Wednesday, June 8, 2016

#PCLN Thoughts & Levels for June 8, 2016 by @MockTrade

#PCLN Thoughts & Levels for June 8, 2016 by @MockTradeSocialTwist Tell-a-Friend











Currently I am holding a PCLN Strangle with an August expiration which was engaged when PCLN was balanced and consolidating between 1250 & 1302. Once PCLN breached above 1302 my bias turned from neutral to bullish; however in order for the Call side of the August expiration Strangle to push deep into profit PCLN now needs to breach and hold above 1374s/75s.

PCLN is now 20 points-ish below yesterday’s (Tuesday June 7th) high of day (HOD) and is also currently trading below yesterday’s value area (VA) as well while below 1358s. Trading below value is not a good sign for a Long bias but until first below 1340 with 1325s-1320s zone as line in sand (LIS) I will assume the pull-back from yesterday’s HOD is just some profit taking following the +137 point upside move from the 1236s area back in mid/late May.

If PCLN was still holding within the previous balance area between 1250 & 1302 ahead of the June rate decision it would not matter to me which way PCLN traded post rate decision in regards to the current August Strangle, but now that PCLN is well above the previous balance area/+1302 it is definitely more ideal for PCLN to get above 1375s before FOMC rate decision next week. If so I will then have sights on 1393s-1402s zone then 1422s-1425s zone to consider scaling and/or exiting the entire August expiration PCLN Strangle.

Ethan Premock
Futures & Options Strategist

Hamzei Anlytics, LLC 

Posted by Hamzei Analytics, LLC at 11:45 AM

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