Can It Look More Bearish?

Weekly Continuous

I through out the comment on options expiration (Thursday Daily) that those that had sold the puts at long term support ($1.50) should not be comfortable. It turned out that they were forced to cover positions during the process. Prices continued further but the damage had been done.

Now we face the new prompt (August) and expect the premium afforded the Aug contract to be challenged. That being said, we discussed the Bollinger study recently and last week’s close was THREE standard deviations below the 20 week SMA. While the weekly RSI is not in extreme territory– it could be setting up for a popular bullish divergence (a counter trend indicator)– time will tell.

To read The Daily Call you must be a subscriber (Current members sign in here. ) Start your subscription today.