AI
Thursday, March 26, 2020 7:20:31 PM
TEVA Sup/Res Distribution
Current resistance is shown as 8.16 -- what the middle orange arrow is pointing at. The distribution (on the right) is based on closing prices (as can be seen by the message at the top of the chart). Using opening prices would shift SR levels and give things a little different look. Using both together would smudge up the distribution, and just add confusion.
As current price attempts to move higher, it will tend to stay a little lower than overhead resistance, which is currently focused at $8.16 (as computed over 13-months of data). TEVA has risen significantly this week. For those reasons I choose to do nothing with my current $8 CC trade on TEVA. I'll ride it one more day and either my shares get assigned at $8 or they don't. Either way, I'll be owning TEVA shares again next week -- then I'll let them drift for a day or two and decide when and if and where to write more CCs against the shares. Wash, rinse, repeat every week -- gotta love those dividends the CCs bring in!
One more thing: I tend to look at this last seven trading days as a short pennant pattern off the bottom. A breakout higher could carry the stock $2 higher pretty fast. Wouldn't that be great! This is my only trade; and I'm 100% in, two accounts.
Oh, another one more thing. TEVA is a pharma company -- duh. It seems that group of companies should benefit the most from this virus thingy as all the drugs that solve these problems that the whole world is now sucked into originate from pharma companies. Apparently I'm wrong because I haven't seen pharma companies being treated any better during this decline. Will it finally become evident as earnings come out?
Current resistance is shown as 8.16 -- what the middle orange arrow is pointing at. The distribution (on the right) is based on closing prices (as can be seen by the message at the top of the chart). Using opening prices would shift SR levels and give things a little different look. Using both together would smudge up the distribution, and just add confusion.
As current price attempts to move higher, it will tend to stay a little lower than overhead resistance, which is currently focused at $8.16 (as computed over 13-months of data). TEVA has risen significantly this week. For those reasons I choose to do nothing with my current $8 CC trade on TEVA. I'll ride it one more day and either my shares get assigned at $8 or they don't. Either way, I'll be owning TEVA shares again next week -- then I'll let them drift for a day or two and decide when and if and where to write more CCs against the shares. Wash, rinse, repeat every week -- gotta love those dividends the CCs bring in!
One more thing: I tend to look at this last seven trading days as a short pennant pattern off the bottom. A breakout higher could carry the stock $2 higher pretty fast. Wouldn't that be great! This is my only trade; and I'm 100% in, two accounts.
Oh, another one more thing. TEVA is a pharma company -- duh. It seems that group of companies should benefit the most from this virus thingy as all the drugs that solve these problems that the whole world is now sucked into originate from pharma companies. Apparently I'm wrong because I haven't seen pharma companies being treated any better during this decline. Will it finally become evident as earnings come out?
