Bonus Trades! Long OXY and Short RIVN
No sense in keeping these trades to myself. Enjoy!
We did not get the start to the week that would supercharge our portfolio. That’s ok because we did get more trading opportunities.
When we get a big down day like we did Monday it is time to review your watchlist for prime trading set ups.
This is where the big money is made.
Most are too concerned and either wait it out or take a more risk averse, timid approach. This is fine.
Getting in ahead of the pack is where the big profits show up and to find them you have to be searching when others are retreating.
If you have money waiting to deploy, and you should, there are two more trades I am considering this week that I think you might find interesting.
RIVN
First up, shorting RIVN with put options.
This down trend looks like it will continue. The 20-day simple moving average (SMA) crossed below the 50-day SMA, a near term bearish indicator.
Add to that, the 50-day SMA looks ready to cross below the 200-day SMA which would indicate and even longer term downturn.
The relative strength index (RSI) is weak getting weaker and the candles for RIVN are steadily rejecting against the 5-day SMA.
There is a volume shelf just above 10.00 which is actually not surprising. Other than that, the floor looks far much lower.
I hope this company survives and does well long term. For now, I’ll trade the trend lower.
OXY
Heading in a better direction, OXY looks ready to break out of the short term downtrend and power back to test recent highs.
We are close to breaking trend, holding above the 5-day SMA for multiple days, and RSI is about to get above 50 with a day or two of more upside.
There is the 50-day SMA above to contend with, sitting near 49. A profit target.
The profit targets and stop loss levels are clean for both of these trades. Options are a little tricky for RIVN but definitely manageable and OXY looks ready to rip.
For paid subscribers, drop your thoughts on these two trade ideas. I want to hear how you are doing, your thoughts, and your questions.
Now let’s get to the trade details!
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