As we closed out the $800 Calls on Tuesday April 2nd, there was an intention to re-open these for 1 more move higher so long as the charts confirm what we were seeing back then...
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This morning there were several stop outs as a range developed and the stop outs created some supply at better levels while there was a positive 3C signal, so it all looks like the work of professional accumulation. The first stop run was on the open and the volume on this 1 min chart shows it could have been either one of yesterday's late afternoon intraday support levels or both, the candle took out both in the same minute.
It seems as if the old day trading "A.m. Range" was in effect as support that generally develops around 10-10:30 is typically the range, that was a stop run and then the intraday lows. Right after the last stop out we moved higher, so again this is the same head fake effect we see on daily charts (the articles explaining the concept and why, are linked on the right, upper side of the member's site as "Understanding the Head-Fake Move: part 1 and 2).
This longer 60 min chart is part of what kept me open to a new short term call position.
The positive on the 30 min was more influential.
As well as the 15 min, at this point I just needed to see the shorter term charts straighten out on a pullback.
The 10 min leading positive
5 min leading positive
The 1 min leading positive
and migration of the divergence to the 3 min leading positive.
The momentum chart is showing a change in character in momentum, RSI, MACD and hopefully soon Stochastics will embed above 75.
Intraday stops, with the 5 min I prefer that the stop is accompanied by the moving average shifting direction (down for a long stop) and the Trend Channel can be used as well. I think this is better for equity positions as options need to be a little more ahead of the curve.
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