I am an opportunistic trader that utilizes a variety of strategies to participate in a stock price move. Sometimes I just use stock, long or short, sometimes I use just Options, and sometimes I use a combination of the two. Sometimes the opportunity requires patience to set up – even though I can see it coiling on a chart – as the setup has to be anticipated.
In reviewing several charts this morning, I noticed several stocks that had price banging its head (from below) on a down-trending (DT) line above. I like this setup because at some point it will break above this DT line and I want to play that move.
One such stock is $IO:
One thing to note here is this: once price does break above the DT line, there will be some formidable resistance next at the 50 & 200 SMA (simple moving average) at 6.50 & 6.65. Volume is trying to increase here so be ready for the imminent break.
Anticipate, but be patient.