Black Hills (BKH) finally made its way to my target area and is finding nice support at the 62% Fibonacci retracement level. The decline took its sweet time unfolding in a WXY combination correction for wave (ii). But since I had a spread, I didn't mind. The sharp decline here is indicative of a C impulsive wave which I have as wave ((C)), but it can certainly continue lower. However, it will do so without me as I got my pound of flesh from the market. Here is the trade result:
Bought BKY put vertical May 55/60 $1.84 and sold for $2.57 for a 40% profit.
HERE IS THE ORIGINAL TRADE SETUP:
Black Hills Corp. is in a wave (ii) within a larger bullish move. More importantly, it is in wave c of wave (ii), which is an impulsive affair, and therefore should be quite sharp. Using wave analysis comparing wave A to wave C, and Fibonacci retracements of wave (i), I see a confluence of support between $56 - $57, so my target will lie somewhere in that area. I placed a put option vertical spread:
Buy to open May 20 55/60 Put
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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.
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