Does HD have the strength to move higher? Swing Put Entry

I am not sure if HD can muster up the strength to move up towards 320 or the daily 20sma, which would be a great place to buy swing puts. I see this 30min consolidation and stochastic is bearish. I do not like the daily stochastic here to enter swing puts but RSI is bearish and there is a clear path from 300 to 280 if weakness continues.

I see a low risk trade here, and maybe also a day trade, as I will exit swing puts if I do not like price action or 30min close over 306.30-307.

@Burning-Theta Recently posted more detailed thoughts on this stock here:

HD likely to head lower based on Elliott Wave, Other Technicals

註釋

Bought 13May 280 puts @ 2.90

交易進行

Price moved over 307 to create a higher close on 30min chart, but this also created bearish divergence with RSI and stochastic. There was a nice selloff afterwards. Swing trades that I hold over a weekend use very little capital so I am comfortable with risk in the trade.

註釋

Decided to take a second look at HD. If price starts moving higher, back over 309, then on the weekly chart we should have RSI holding bullish support. If markets move higher in H2 2022, and HD with it, there is a nice swing trade up. So as a trader, I am keeping myself open to both possibilities and will see what price reveals over the next few days.

手動結束交易

Even though I bought 13May expiry, I sold my puts today because IV went up and my options went up over 70%. On daily charts, the indices are pulling back to moving average supports and markets should rise again. Overall I expect choppiness as people grapple with higher rates, and I think HD can bounce from here. I am buying calls. Look at daily stochastic and you will see this is the 3rd %K dip below 30 (period = 10). Usually after 3 there is a tradeable move up. I do not use or study Elliott Waves, but I apply the concept when looking at my charts. Since 25 March you can see three dips of RSI (7) and %K(10), which I think of as 3 waves down. Buy calls and exit below 297, 296.60, 295.91 (low of day)