JOURNAL: IWM Calls – PART 3

Last Update: 7/31/2017

7/12/2017

Earlier today, late morning (below chart is screened at the time), I’ve decided to add more CALLS at 141.05 to my current holdings.  In my last update, I talked about the 50EMA that needed to hold and the Fib level.  Well, the level held and it gaped up above 141ish this morning and it quickly rallied as high as 141.22 before fading back down in the late morning.  As I was watching IWM early morning, I thought to myself, if it fades back down to gaped area at 141.10ish I am willing to add more CALLS at that time.  Well, it did in late morning, and I pulled the trigger at 141.05.

Here was the thought process with the entry:

1. We have an island reversal pattern (blue box) just developed with the gap-up this morning
2. 50EMA (pink dotted) is still rising showing intermediate-term bullish strength
3. Price has gotten back above the 20EMA (light blue) showing minor-term bullish strength

So the bulls did a good job gaping it up, but now, bulls need to protect this gap-up level at 141.00 and keep it protected next several sessions.  If bulls can protect this gap (make sure it does NOT get filled) and keep the Island Reversal Pattern alive, I believe will will see higher prices and finally broke out of this 7-month consolidations.  And upon breakout of this 7-month consolidation pattern, I think we will see 148ish pretty quickly.  Now I am holding all of my CALLS since 136.53, 138.46, 139.30, 140.18, & 141.05.

 PART 1 & 2

7/19/2017

IWM finally broke out today above the major resistance I’ve been observing since mid-June.  Now, as long as the bulls defend 141.50 – 142.00ish, I think, IWM is ready for a take off and resume with it’s primary-term uptrend and start catching up with other indices such as SPY QQQ DIA (because IWM has been in this 7-month consolidation range in the macro level).  Everything looks really good here for continuation to the upside.  I am holding all of my CALLS since 136.53, 138.46, 139.30, 140.18, & 141.05.

7/24/2017

IWM retested the prior breakout point of 142-level (red) coinciding with the rising-uptrend support, and formed bull flag pattern here in the last three days.

• If breakout to the upside, 146-148 expected
• If we lose this level to the downside, 141-140 is next support to watch
• 20EMA is rising and currently residing at 141.40ish

I am still holding all of my CALLS since 136.53, 138.46, 139.30, 140.18, & 141.05.

7/25/2017

IWM textbook bull flag (dotted blue) and horizontal resistance (red) and rising uptrend-support (solid blue) breakout today.

• 3-day bull flag breakout confirmed
• Gap remains open as of today
• I want to see 143.30ish holds should the price slides
• As long as we hold above 143ish, I am expecting much higher prices

I am still holding all of my CALLS since 136.53, 138.46, 139.30, 140.18, & 141.05.

7/31/2017

I wanted to see 143ish to hold as I was noting on my previous update, but it didn’t, and it fell right through the gap and now trying to find a support on that rising-support line. As you can see, intermediate-term sentiment is still bullish with higher lows and higher highs still intact.  Let’ see if we can see some bounce here, if not, 50EMA is residing at 140ish.  I am still holding all of my CALLS since 136.53, 138.46, 139.30, 140.18, & 141.05.

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