Check out the chart and write up below to find a Bottom
Reversal Opportunity on FFIV.
NeverLossTrading HF-Stock Trading Chart (only
trade, when the price threshold is surpassed)
The NLT Alert Scanners gave us a signal for a bottom
reversal on FFIV:
Entry Price Level and Outlook
We only want to consider a long opportunity when the spelled
out price threshold > $114.51 is surpassed. By our algorithm based
calculation the buy-stop entry is at $114.61. If the price of FFIV does not get
there, we do not accept the trade.
Only when the price for FFIV will reach $114.61, we have our
confirmation that other market participants support the institutional move our
scanners found.
The Purple-Line identifies the price development of the past
five years and indicates that we are entering a time period, where FFIV shows a
strong price development.
If the trade realizes, the expected time in the trade is
about five days, maximum 8 days, watching out for the earnings announcement on
10/29/2014. If you want to hold the position over earnings, find a form of
protection.
Target Price
The algorithm based target price is at: $118.84
Entry to Exit: $118.84 - $114.61 = $4.23 (return on target:
3.7%).
Stop or Trade Adjustment Level
In case the trade does not perform as expected, take action
at: $110.79 (risk of 3.3%).
Alternative Way to Trade this FFIV Chart Setup:
Sell the September 2014, $105 Put for a premium of $2.40
(2.1% return in 34 days, 22.2% annual). The probability for the keeping the
premium is calculated at 71%.
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http://neverlosstrading.com/Stock_Trader_Alert.html
Good trading,
Thomas
