Breakout in GOOGL

[Steven Place]

Combination of a few “patterns” here.

It had a failed breakout under 500 back in January, so that’s where sellers lost control. It then had a massive rip up to 545 before pulling back aggressively into earnings.

Earnings weren’t terrible and 545 was attempted again. It’s been consolidating for about 2 weeks now and i think 545 will act as a magnet, most likely breaking out from there.

Here’s the trade:

Buy to open GOOGL Mar 540/570 bull call spread for 7.80

Stop 520

[Steven Place]

Remember… best place to ask questions is in the chat.

[Steven Place]

First target of 550 has been hit (technically 549.50 but that’s close enough), it’s time to scale out of this trade.

Sell to close HALF SIZE GOOGL Mar 540/570 call spread @ 13.50

If you don’t have enough size to scale out, then consider simply rolling the 540 call up to the 550 call, that will reduce your directional exposure.

[Steven Place]

GOOGL is making a new higher high… and I’m going to take profits on the rest here.

Here’s why:

1. Trendline resistance.
2. 200 day moving average resistance
3. 3 Days in a row higher
4. Price into upper bollinger band
5. Stock still not in a proper uptrend, so there’s still work to be done.
6. A statistically normal pullback here would wipe out a good amount of gains

So I want to close here, and if GOOGL dips I will re-buy the spreads.

Sell to close GOOGL Mar 540/570 call spreads for 16.70 or higher.

[Author]

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