abcdefghiJK...Before I begin I'm going to explain the meaning of each line on this chart...
All you need to do to follow this and trade it for profit is focus on the solid plack path/arrow - that is the forecast for expected price action in the coming weeks (the thicker black path is general direction, the other black path is the expected subwaves). So when you load new bars in the coming weeks you'll see price trades along this forecast.
In summary, expect a 4-6% drop going into earnings, followed by a 10-14% rally after earnings
Pullback (pre-earnings 2/1): Don't enter long until around 1/26/'24 - 1/30/'24, wait to buy the upcoming dip.
- Point Downside target = 133 by 1/26/2024
- range for pullback = 132-137
~ This could still trade higher to around 146-147 before pullback, but it will get discounted (lower than current price) before earnings
Post-Earnings Rally: I'll be buying after this pullback going into the earnings report, good chance it will be trading around 144 after the report .
- Point INITIAL upside target (after pullback) = 148 by 2/12/2024
- Initial upside target range = 148-152 (in the time period 2/8 - 2/20)
*** After this hits initial target it will consolidate in the 146-152 range before making one final leg higher to low 160s by mid-March 2024 (could run as high as 172)
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How to Play this (not financial advice):
- Don't buy/add shares (if you do go light), after this reaches 160-170 it will be the top, after that it will begin a major correction. If you're in shares look to sell in 160-170 range.
- Don't waste your energy playing puts to catch this pullback, instead wait for opportunity to enter calls
- I'll post an update when it is time to enter long
** I'll be looking at March expiration and choose strike based on extent of pullback.
P.S. Check the History
