Z Trade Follow Up

Z was entered as a Call play earlier this week (short term trade), Trade Idea: (Short Term Option) Z.

Just yesterday I posted an update as things were looking close to popping to the upside, Quick Z Update,  here are the two things I was looking for first...

 First a break above the 50-bar, 5 min moving average and then...

A break above the 50-bar 60 min moving average , both of which we have this morning.

So far the sharp positive divergence/accumulation we saw is still in line with price, confirming this gap up.

The 5 min chart shows Z as having a pretty substantial divergence that I'd think (unless we see severe deterioration) should continue this move in to next week.

In fact there's a strong divergence right out to the 15 min charts so in my view (even though we must consider the overall market), Z looks like it's just starting a move that should continue well in to next week.

Just don't go thinking this is a game changer for Z. This is the 4 hour chart and it has seen strong distribution. I like Z for a decent swing move, but it's not changing the overall tone and longer term probabilities which are to the downside. Just enjoy the ride.