New Trade in ZION

[Steven Place]

ZION is putting in a failed breakdown pattern. It had a descending triangle with support at 28.75 that broke down, but it failed and buyers defended that level. You can get away with playing this as a swing long against those lows.

ZION is also a reigaonal bank, which actually benefits from higher rates, so there is a “macro-tailwind” involved.

Here’s the trade I like:

Buy Oct 30 Call @.96 or lower

Stop 28.48

That puts your per-contract risk at about -50. So for a 40k portfolio, put up 6 contracts to put your risk at -300.

Initial target is going to be the gap fill at 30.75, which gives a reward of about +300. At that level consider scaling out of some of the trade, or rolling into a vertical spread

[Steven Place]

ZION is getting stopped out here on the gap down. 28.48 was a hard stop, and we need to close it out at our planned risk.

The lack of follow through was a major issue in ZION, after the higher high, the breakout failed and it went back to retest key support at 29.25. An adjusted stop there would have been a good idea, but the gap higher in TLT and gap lower in SPX created a very poor environment for that trade.

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