Radian Group (RDN) is sitting right on a support line that was established on a daily chart . This price level was resistance in June, resistance again in early and mid November, and held as support for three days last week. Radian has been in an up trend recently. We saw some dark pool activity in this area, as well as some options flow. The options flow wasn't super aggressive, but it was for May expiration, so plenty of time on those contracts.
What I like about charts like this is that we don't have to guess at what trade to take. Since we are sitting right on a sup/res line, if we open above this line, we can take a long position, with a stop slightly below. If we open below this level, we can take a short position with a stop slightly above. Since we are sitting right on a sup/res line, we will know right away if our trade idea is invalidated and we can exit with minimal losses. This one is on watch for Monday's open to see which direction it opens and what kind of strength or weakness it shows.
What I like about charts like this is that we don't have to guess at what trade to take. Since we are sitting right on a sup/res line, if we open above this line, we can take a long position, with a stop slightly below. If we open below this level, we can take a short position with a stop slightly above. Since we are sitting right on a sup/res line, we will know right away if our trade idea is invalidated and we can exit with minimal losses. This one is on watch for Monday's open to see which direction it opens and what kind of strength or weakness it shows.