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Ichimoku Watch: Walmart Looking at All-Time Highs!Upcoming Earnings Release: Walmart Inc. (ticker: WMT) is scheduled to report earnings before the market opens on 16 May. The consensus EPS estimate for the fiscal quarter ending April 2024 is $0.52, while the reported EPS for the same quarter a year prior was $0.49. Strong Technical Evidence Supporting Buyers Ahead of next week’s earnings, Walmart is offering interesting price action. Starting at the basics, the trend in this market cannot really be questioned at this point, and following the latest correction from all-time highs of $61.66 set in March, this could be a market that dip-buyers are drawn to over the coming weeks. Adding to the current uptrend’s strength, price has also rebounded from the Ichimoku Cloud (consisting of the Leading Span A and the Leading Span B) and is above both the conversion line and the base line. You can also see that the conversion line is on the brink of crossing back above the slower-moving base line. Given that price has recently rebounded from the Ichimoku Cloud and the stock is entrenched in a considerable uptrend, a noticeable crossover here would likely prompt buyers to enter the market to challenge the all-time high. The double-bottom pattern (shown by the green arrows at $58.63) adds weight to a bullish showing here. It was also recently completed by trading beyond the pattern’s neckline at $60.53. If price follows through higher after this breakout, the pattern’s upside target will be $62.59. Price Direction? With everything considered, this remains a bullish market and the break of the double-bottom pattern’s neckline emphasises the potential strength of buyers from the Ichimoku Cloud.
NYSE:WMTLong
by FPMarkets
Options Blueprint Series: Ratio Spreads for the Advanced TraderIntroduction to Ratio Spreads on E-mini Dow Jones Futures In the dynamic world of options trading, Ratio Spreads stand out as a sophisticated strategy designed for traders looking to leverage market nuances to their advantage. Regular options on the E-mini Dow Jones Futures are a popular choice (YM). Defining the E-mini Dow Jones (YM) Futures Contract Before delving into the specifics of Ratio Spreads, understanding the underlying contract on which these options are based is crucial. The E-mini Dow Jones Futures, symbol YM, offers traders exposure to the 30 blue-chip companies of the Dow Jones Industrial Average in a smaller, more accessible format. Each YM contract represents $5 per index point. Key Contract Specifications: Point Value: $5 per point of the Dow Jones Industrial Average. Trading Hours: Sunday - Friday, 6:00 PM - 5:00 PM (Next day) ET with a trading halt from 5:00 PM - 6:00 PM ET daily. Margins: Varied based on broker but generally lower than the full-sized contracts, providing a cost-effective entry for various trading strategies. CME Group suggests $8,400 per contract at the time of this publication. Ratio Spread Margins: Often require a careful calculation as they involve multiple positions. Traders must consult with their brokers to understand the specific margin requirements for entering into ratio spreads using YM futures. Margins for Ratio Spreads are often equal to the margin requirement when trading the outright futures contract. Understanding Ratio Spreads Ratio Spreads involve buying and selling different amounts of options at varying strike prices, but within the same expiration period. This strategy is typically employed to exploit expected directional moves or stability in the underlying asset, with an additional emphasis on benefiting from time decay. Types of Ratio Spreads: Call Ratio Spread: Involves buying calls at a lower strike price and selling a greater number of calls at a higher strike price. This setup is generally used in mildly bullish scenarios. Put Ratio Spread: Consists of buying puts at a higher strike price and selling more puts at a lower strike price, suitable for mildly bearish market conditions. Mechanics: Execution: Traders initiate these spreads by first determining their view on the market direction. For a bullish outlook, a call ratio spread is suitable; for a bearish view, a put ratio spread would be applicable. Objective: The primary goal is to benefit from the premium decay of the short positions outweighing the cost of the long positions. This is enhanced if the market moves slowly towards the strike price of the short options or remains at a standstill. Risk Management: It's crucial to manage risks as these spreads can lead to limited losses if the market moves against the trader, or surprisingly to many, to unlimited losses if the market moves sharply in the desired direction. Proper stop-loss settings, adjustments and continual market analysis are imperative. Focused Strategy: Bullish Call Ratio Spread In the context of the E-mini Dow Jones, considering the current upward trend with potential slow advancement due to overhead UFO (UnFilled Orders) Resistances, a Bullish Call Ratio Spread can be particularly effective. This strategy allows traders to capitalize on the gradual upward movement while keeping a lid on risks associated with faster, unexpected spikes. Strategy Setup: Selecting Strikes: Choose a lower strike where the long calls are bought and a higher strike where more calls are sold. The selection depends on the resistance levels indicated by the UFOs. Position Sizing: Typically, the number of calls sold is higher than those bought, maintaining a ratio that aligns with the trader's risk tolerance and market outlook. Market Conditions: Best implemented when expecting a gradual increase in the market, allowing time decay to erode the value of the short call positions advantageously. Real-time Market Example: Bullish Call Ratio Spread on E-mini Dow Jones Futures Given the current market scenario where the Dow Jones Index is experiencing a bullish breakout, it’s crucial to align our options trading strategy to take advantage of potential slow upward movements signaled by overhead UFO Resistances. This setup suggests a favorable environment for a Bullish Call Ratio Spread, aiming to maximize the benefits of time decay while managing risk exposure effectively. Setting Up the Bullish Call Ratio Spread: 1. Selection of Strike Prices: Long Calls: Choose a strike price near the current market level (Strike = 39000). Short Calls: Set the higher strike prices right at or above the identified UFO Resistances (Strike = 41000). The rationale here is that these levels are expected to cap the upward movement, thus enhancing the likelihood that these short calls expire worthless or decrease in value, maximizing the time decay benefit. 2. Ratio of Calls: Opt for a ratio that reflects confidence in the bullish movement but also cushions against an unexpected rally. A common setup might be 1 long call for every 2 short calls. Execution: Trade Entry: Enter the trade when you observe a confirmed break above a minor resistance or a pullback that respects the upward trend structure. Monitoring: Regularly monitor the price action as it approaches the UFO Resistances. Adjust the position if the market shows signs of either stalling or breaking through these levels more robustly than anticipated. Trade Management: Adjustments: If the market advances towards the higher strike more quickly than expected, consider buying back some short calls to reduce exposure. Risk Control: Implement stop-loss orders to mitigate potential losses should the market move sharply against the position. This could be set at a level where the market structure changes from bullish to bearish. This real-time scenario provides a practical example of how advanced traders can utilize Bullish Call Ratio Spreads to navigate complex market dynamics effectively, leveraging both market sentiment and technical resistance points to structure a potentially profitable trade setup. Advantages of Ratio Spreads in Options Trading Ratio Spreads offer a strategic advantage in options trading by balancing the potential for profit with a controlled risk management approach. Here are some key benefits of incorporating Ratio Spreads into your trading arsenal: 1. Maximizing Time Decay Optimized Premium Decay: By selling more options than are bought, traders can capitalize on the accelerated decay of the premium of short positions. This is particularly advantageous in markets exhibiting slow to moderate price movements, as expected with the current Dow Jones trend influenced by UFO resistances. 2. Cost Efficiency Reduced Net Cost: The cost of purchasing options is offset by the income received from selling options, reducing the net cost of entering the trade. This can provide a more affordable way to leverage significant market positions without a substantial upfront investment. The Net Debit paid is 403.4 (690 – 143.3 – 143.3) = $2,017 since each YM point is worth $5. Note: We are using the CME Group Options Calculator in order to generate fair value prices and Greeks for any options on futures contracts. 3. Profit in Multiple Market Conditions Versatile Profit Scenarios: Depending on the setup, Ratio Spreads can be profitable in a stagnant, slightly bullish, or slightly bearish market. The key is the strategic selection of strike prices relative to expected market behavior, enabling profits through slight directional moves while protected against losses from significant adverse moves. 4. Flexible Adjustments Scalability and Reversibility: Given their structure, Ratio Spreads allow for easy scaling or reversing positions depending on market movements and trader outlook. This flexibility can be a critical factor in dynamic markets where adjustments need to be swift and cost-effective. Risk Management in Ratio Spreads While Ratio Spreads offer several benefits, they are not without risks, particularly from significant market moves that can lead to potentially unlimited losses. Here’s how to manage those risks: Stop-Loss Orders: Setting stop-losses at predetermined levels can help traders exit positions that move against them, preventing larger losses. Position Monitoring: Regular monitoring and analysis are crucial, especially as the market approaches or reaches the strike price of the short options. Adjustments: Being proactive about adjusting the spread, either by buying back short options or by rolling the positions to different strikes or expiries, can help manage risk and lock in profits. Conclusion Ratio Spreads, particularly in the format of Bullish Call Ratio Spreads demonstrated with E-mini Dow Jones Futures, offer a sophisticated strategy that balances potential profit with manageable risks. This approach is suited for traders who have a nuanced understanding of market dynamics and can navigate the complexities of options with strategic finesse. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CBOT_MINI:YM1!Education
by traddictiv
Dotusd chartSince I posted a chart on the dotusdt pair showing the double bottom and the bearish head and shoulders pattern, I also wanted to post a polkadot idea that showed the bigger inverse head and shoulders pattern thats still very much in play as well. We can see how dot did a very convincing fake breakout above the neckline before dipping back down below it. It’s common for price to go above the neckline multiple times and then back below it in between those times before the actual breakout, usually it doesn’t go this high above the neckline without validating the breakout, but let this chart be a rare example that shows it can happen. We can see that the weekly 50ma in orange and the weekly 100ma in yellow is currently holding double reinforced support and could easily end up being the lowest part of the right shoulder of the inverse head and shoulders. On the previous dotusdt chart that I posted shortly before this one (which I will link to below) you can see the weekly 50 ma is double reinforced support with the top trendline of the channel also suggesting the bottom of the right shoulder may be in. The top trendline maintained support on the usdt pair but we can see price action had dipped below the trendline here on the usd pair and is still currently just below it. Need to reclaim that trendline as support on the usd pair too to help insure we won’t breakdown from the bearish smaller head and shoulder I posted on the usdt pair chart. *not financial advice*
COINBASE:DOTUSD
by DrDovetail
1
Partisia Blockchain starts to move in upward trendHello traders, I want share with you my opinion about Partisia Blockchain. Looking at the chart, we can see how the price some days ago declined to the resistance level, which coincided with the seller zone and soon broke this level. After this, MPC made the double bottom pattern, after which turned around and made a strong upward impulse higher than 0.3900 level, breaking it again. But later, the price turned around and declined to the seller zone, where MPC some time traded very close to the 0.3900 level and soon broke this level again. After this, the price entered to symmetrical triangle, where Partisia Blockchain at once made a downward impulse from the resistance line to the support line. Soon, the price turned around and rose from the support line higher 0.2620 support level, which coincided with the buyer zone. Later MPC declined to this zone, after which it at once rebounded up to the resistance line, but soon price rolled down to the support line of the triangle. A not long time ago MPC bounced from this line and now it trades close to the resistance line of the triangle, so, for this case, I think Partisia can exit from the triangle, and then make a retest. After this movement, MPC can continue to rise to the resistance level, and when the price reaches this level, Partisia Blockchain will break it, make a retest, or at once continue to move up. So, for this reason, I set three goals: 1-st TP at 0.3900 resistance level, 2-nd TP at 0.4920 points, and 3-rd TP at 0.6650 points. Please share this idea with your friends and click Boost 🚀
GATEIO:MPCUSDTLong
by LegionQ8
2
Banking Stock - Keep An Eye - BANKBARODA📊 Script: BANKBARODA 📊 Sector: Banks 📊 Industry: Banks - Public Sector Key highlights: 💡⚡ 📈 Script has given breakout of Double Bottom pattern but didn't sustain keep an eye on it we may see good rally. 📈 One can go for Swing Trade above 284. BUY ONLY ABOVE 284 ⏱️ C.M.P 📑💰- 281 🟢 Target 🎯🏆 - 311 ⚠️ Important: Always maintain your Risk & Reward Ratio. ✅Like and follow to never miss a new idea!✅ Disclaimer: I am not SEBI Registered Advisor. My posts are purely for training and educational purposes. Eat🍜 Sleep😴 TradingView📈 Repeat 🔁 Happy learning with trading. Cheers!🥂
NSE:BANKBARODALong
by radha_23
PERPUSDT: Bullish Engulfing at 200 Moving Average and SupportPERP has Bullishly Engulfed above a major Support/Resistance Level and looks to be forming a Double Bottom of sorts with Bullish Divergence on the MACD. If it plays out we could very well see higher highs and may actually see a macro Bullish Breakout of an even bigger pattern of higher lows and higher highs on the Weekly, but for the time being I'd just want it to try to recover the range highs of the daily Double Bottom.
Long
by RizeSenpai
Celo (cgldusd) Weekly chart indicates the double bottom breakout. . .has been validated. Now jsut waiting for price action to head to the full double bottom breakout target. In the current price zone, a mild correction before reaching the full target wouldn’t surprise me. In doing so it would help it create an inverse head and shoulders for its follow up bull pattern. Also a chance it just skips the correction and heads straight to the full target first. Either way I expect the target to be hit. *not financial advice*
COINBASE:CGLDUSD
by DrDovetail
It appears that the metaverse & gaming cryptos are waking up. Just as we are finally seeing mana pump and gala, we are now likewise seeing sand follow suit too as it seems to have finally broken up from the extended descending bear flag it was in for the longest time that I have posted charts about in the past. There are two possible measured move targets for the yellow channel its breaking up from. The dotted pink line represents th target if the slightly lower top trendline is the more valid top trendline of the channel, and the dotted yellow line represents the breakout target for if the highest of the potential top trendlines of the channel is the more valid one. Often times they both end up being validated. The dotted dark bluish purple trendline is the measured move for when sand breaks above the top horizontal bluish purple neckline which is the neckline of the double bottom pattern its currently printing on the chart. *not financial advice*
BINANCE:SANDUSD
by DrDovetail
1
ETH/USDT BULLISH PATTERN! READY TO GO UPSIDE!!Hello everyone, if you like the idea, do not forget to support it with a like and follow. Welcome to this ETH/USDT Update. ETH/USDT is forming a bullish Adam & Eve double bottom pattern, suggesting a potential trend reversal towards higher prices. Analysis: Adam's Cup: We see a clear downward movement followed by a rounded bottom reversal, forming the left cup of the Adam & Eve pattern. Eve's Cup: The price is completed with a similar rounded bottom, potentially forming the right cup (Eve's cup) of the pattern. Neckline: A trendline can be drawn connecting the lows of both cups, forming the neckline. A breakout above this neckline is already done and it is a bullish signal. Indicators: Moving Average: The price is also breaking above the 100D moving average. Target: The measured move target for the Adam & Eve pattern would be the height of the first cup (Adam's cup) added to the breakout point above the neckline. Stop Loss: A stop loss can be placed below the neckline for risk management. If you like this idea then do support it with like and follow. Also, share your views in the comment section. Thank You!
Long
by CoreCrypto1
NEOUSD: Breaking Above the 0.886 within a Massive Double BottomNEO has formed a massive Double Bottom structure that has been in development since late 2018 and now nearly 6 years later is attempting to NEO has once again claimed the 21-Month SMA as support and aims to break back above the 0.886 Fibonacci Retrace. If it is successful in this we could see this be the start of a massive move to the upside, capable of taking it all the way up to as high as $140 a maybe even higher after that, though there may be a bit of resistance up at $56 level first as that aligns with the 0.618 and historical horizontal resistance.
Long
by RizeSenpai
SOL - Adam & Eve Double Bottom Confirming Overall performance rank (1 is best): 17 out of 39 Break even failure rate: 12% Average rise: 43% Throwback rate: 67% Percentage meeting price target: 69% The Adam & Eve double bottom pattern is a bullish reversal pattern that has been identified on the SOL Intraday price charts. Initially, SOL experienced a sharp decline from $180 to $155, forming the 'Adam' part of the pattern. This was followed by a more gradual, rounded decline over the next 10 days, forming the 'Eve' part of the pattern. This pattern suggests a potential reversal from the previous downtrend. Potential Market Implications The resistance level at $155 is pivotal for SOL's short-term price movement. A breakout above this level could confirm the bullish reversal indicated by the Adam & Eve pattern, potentially leading to a price target of $186. Statistical analysis suggests a 69% probability of reaching this target upon successful breakout. Strategic Considerations Investors and traders should consider the breakout above the $155 resistance level as a key signal for potential entry. It is advisable to wait for confirmation of the breakout before making any trading decisions. As always, it is important to consider other market factors and conduct a comprehensive analysis before entering any positions. Adam & Eve Trading Tips 1. Measure Rule Calculation: - Identify the highest peak (A) and the lowest valley (B) within the Adam & Eve double bottom pattern. - Calculate the height difference between point A and B. - Multiply this height by the 'percentage meeting price target.' - Add the result to the breakout price at point A to determine the price target (C). 2. Price Reversal Requirement: - Ensure there's a significant decline leading to the double bottom; minor declines typically result in minor rises. 3. Big W Pattern: - Favor double bottom patterns with a steep, tall left side (Adam) and minimal price consolidations during the decline. - Anticipate the price to rebound close to the level where the downtrend initiated. 4. Confirmation Necessity: - Wait for the price to close above the peak between the two bottoms for confirmation. - Without confirmation, there's a 48% chance the price will continue to decline. 5. Handle Formation: - After confirmation, watch for price fluctuations forming a 'handle.' - A breakout from this handle typically signals a strong upward trend. 6. Flat Base Indicator: - A significant rise is likely if the double bottom follows a long, flat base. - Use weekly charts to identify the flat base, resembling a pothole on a road. 7. Trend Impact: - Double bottoms following a short-term decline tend to perform best post-breakout. 8. Proximity to Yearly High: - Patterns showing breakouts within a third of the yearly high exhibit the best performance. 9. Volume Trend: - A declining volume trend leading up to the breakout suggests favorable post-breakout performance. 10. Throwbacks Warning: - Be cautious of throwbacks after the breakout, as they can negatively impact post-breakout performance. Conclusion The Adam & Eve double bottom pattern observed on the SOL chart indicates a potential bullish reversal. The upcoming resistance level at $155 is critical, and a breakout above this level could signal a significant upward movement for SOL. Investors and traders should monitor these developments closely and plan their strategies accordingly. ---------------------------------------------------------
Long
by TraderE9
Strong Buy Petronet cmp 214, target 300, Timeframe 1 month.Petronet is into developing, designing, construction, operation of owned and import Liquified Natural Gas(LNG) terminals in India. The company is in the niche business of transportation, storage and regasification of LNG. It owns and operates 2 regasification terminals at Dahej (Gujarat) and Kochi (Kerala) with a combined capacity of 22.5 MMTPA. It accounts for 40% of gas supplies in the country and handles ~75% of LNG imports in India. The company's major customers are GAIL, IOCL and BPCL. Petronet LNG has pioneered the concept of consumption of LNG as liquid ONLY in long distance heavy duty trucks and inter city buses. Small Scale LNG (SSLNG) includes supply of natural gas in the form of LNG to small consumers through unconventional transportation methods like trucks, small vessels etc Petronet is taking initiatives for promoting environment friendly LNG as a fuel in road transportation. It has commissioned India's first LNG dispenser stations inside Dahej & Kochi LNG terminals and has also commissioned the first commercially approved LNG powered buses of the Country.It has signed MOU's with IOCL, Indraprastha Gas Limited, Sabarmati Gas Limited, State Roadways Corporation like KSRTC for running few buses on LNG and establishing LNG dispensing stations at their locations. Petronet LNG is planning for construction of LNG regasification terminal at Bangladesh. It has submitted detailed feasibility report for construction of storage and gasification terminal in South Andaman. Similarly it is planning for setting up a Floating storage & regasification terminal at Colombo, Sri Lanka along with Japanese consortium. Petronet is planning for expansion of the capacities at Dahej Terminal to 22.5 MMTPA from the current 17.5 MMTPA. Key Ratios: ROCE - 26.6 % ROE - 22.8 % EPS - ₹ 22.7 Dividend Yield - 3.27 % Debt to equity - 0.20 Price to book value - 2.00 Stock P/E - 9.44 Industry PE - 18.1 Conclusion: With such a high ROCE and good dividend yield, Petronet is just trading at PE of 9.44 which is considerably undervalued as compared to Industry PE of 18. Technically the stock is poised to give a sharp movement upside as it started rising from strong support zone which is a double bottom pattern and the trend bullish structure is intact. Earlier the breakout of trendline is acting as as support. Trendline connecting lows was taken out for a few days only to grab a liquidity and exit weak hand and to retest strong support levels and from there it has risen sharply with high volumes and it iss again above lower trendline indicating a sharp reversal and good momentum to follow in coming days. The target expected is 300 in timeframe of 1 month which comes to 40% return in just 1 month.
NSE:PETRONETLong
by PrashantDahale
5