At The Channel Line, Bullish Divergence

Looking at the tape, we’re at a confluence.

Today’s price action is near the right-side channel line and downside energy (RSI) has a bullish divergence as shown.

What happens at the next session may result in maintaining the trade (LABD-23-11) or getting stopped out (not advice, not a recommendation).

Recall, the overall trend is down and the bullish set-up shown below, can sometimes get overpowered to the downside.

Biotech SPBIO ($SPSIBI), Daily

The short position via LABD, has a tentative stop in the vicinity of LABD 22.01, but this is not a hard stop (yet).

Hard Stop is still set @ LABD 20.54 (not advice, not a recommendation).

Next Session

The ideal situation for the LABD-23-11, short, is a higher open for LABD, and a higher daily high.

If price action performs otherwise, it’s possible I will take a discretionary exit on the position and go to the sidelines (not advice, not a recommendation).

Stay Tuned

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The Danger Point®, trade mark: No. 6,505,279