Last Update: 11/16/2017
Earlier this morning I’ve decided to add more CALLS at 145.96 (see chart below) as it was retesting that rising-channel resistance (see arrows). I think there is a chance where it could fall back down little more to fill the “Gap” area at 144.40ish just to shake people out, as already too many traders have been waiting and anticipating this bounce at this level. But, also it could be a legitimate bounce where IWM could take us to next leg higher, which I am thinking 157ish as my next target. Either way, I am happy with my entry today as I am still holding sizable CALL-positions on IWM. It was lot of waiting game for months in the early part of my trades (as you can see my positions status chart below), but since the September-run now I believe IWM is preparing to really stretch its wings once again. Let’s see how it plays out, more updates later.
We saw a pretty strong reversal day today with a gap-up and the follow through confirming the 65min bullish-divergence (which I’ve talked about on my mid-week update video last night). That 145ish-level definitely was a strong level of a support with that rising pivot (dotted blue) and the horizontal pivot (red box) colliding in that vicinity. So, now that we have a strong bounce, let’s see if we can able to see a continuation to the upside to get this minor-term momentum to continue. Currently, IWM is trading above the fast moving averages so sentiment is shifting bullish in the minor term, we just need to see if the bulls can keep the momentum going. If it reveres back down sharply in the next few days, we would want to see buyers protecting 144-145 level. Let’s see how it plays out, more updates later.
CLOSED: 1/3 @ 150.13