Hello Simply Stocks and Options Traders!
This week I have decided to put out 2 trade ideas you can set up on your trading platform. Do seems a good way to end the Trading week.
I decided to give out the set up with a bit of technical analysis to support the trade ideas and setup, the trades are viable and can be taken.
Please be aware of your personal circumstance and financial situation before taking the trades as this trade ideas are intended to demonstrate techniques such as risk reward ratio and other strategies we discuss week in week out.
Simply stocks and options is not responsible for any loss that may occur based on these concepts.
Microsoft with ticker symbol MSFT has a nice bearish trading picture
because it is being lagging despite other tech companies leading the way in the
downturn, Microsoft did not hold strong and no big selling pressure.
like a textbook head and shoulder but technically we need to drop below $100 to
set up for a rally.
Oscillators are all heading down, there seems to be a
divergence on the MACD.
The ADX confirms a bearish setup and this is indicated with the green circle on the image
MSFT Trade Idea Setup
Entry at $104.47 with a
Stop loss at $108.53 to include an extra cushion because of the volatility.
Initial target is set at $100 and the next target of $96 / $97.
For the stock trade idea on Microsoft, an option trade set up is quite handy by buying a Long December Put.
Many Stock traders have traded Amazon with ticker symbol AMZN for a
long time but it is definitely in a bearish trend as of now, after previous trading sessions it is now in a big sell off and rallied up to the Moving Averages and the last 3 trading session we had the evening star reversal candlestick.
This is a confirmed bearish trading setup.
You will need a lot of capital to
short the stock so I will not advise this but due to the expensive nature of this trade it makes the most to buy a December Long Put.
All confirm the bearish trade
AMZN Trade Idea Setup
Entry at the low of the day at $1,597 and
Stop loss around the Moving average $1670 with
Initial target of $1,500 and next target at $1350.
Let me know what you think in the comment box below and if you need to get clarification on the set up send me your question and I am happy to answer them. Do not forget to subscribe for more trading education, ideas and market updates.
See you soon.