The chart is starting to take shape (maybe a diamond bottom?) and some of the technical indicators are coming into existence. The RSI below 20 suggests IBKR is extremely oversold, the slow stochastic just gave a buy signal, the 10 day moving average just turned up and the price action looks healthy. IBKR appears to have solid support around $26 but it really all depends on earnings. I like the June 30 calls ahead of earnings because they aren't too expensive with an implied volatility around 40% and buying the stock doesn't seem like a bad idea either.As my regular readers know well, IBKR invokes thoughts of another stock I can't seem to ever get off my mind. And like IBKR this stock seems to have a low risk entry as of Friday's close:
After a solid breakout on rising volume ICE has pulled back to support near 140. The chart is starting to look like a healthy cup n' handle continuation so I like this pullback as an opportunity to go long or add ICE. I would be happy buying ICE between $140 and $145 if there is an opportunity but my stop would be set at 139.99, in other words it better not go there. I think the previous high is reasonable in 2-3 months but lets get past 153.36 first. By the way, the implied volatility on ICE options has really retreated, they are the cheapest they have been in months...
No comments:
Post a Comment