MSFT Analysis in Three Trading Strategies for Dec. 20
1. GEX Analysis for Options Trading
Gamma Levels and Key Insights:
* Support Levels:
* $432.5: Major put wall, indicating strong support for downside protection.
* $435.0: GEX9 level, minor support within the current range.
* Resistance Levels:
* $440.0: Significant call wall, indicating resistance for upward movement.
* $450.0: Highest positive NET GEX and a key resistance level above.
* IV and Sentiment:
* IVR: 37 suggests moderate implied volatility.
* Calls %: Low at 16%, showing bearish sentiment in the options market.
Options Strategy:
* Bullish:
* Long calls above $440. Breakout targets $445 and $450. Use $435 as stop-loss.
* Bearish:
* Buy puts below $432.50, targeting $430 and $427.
2. 1-Hour Chart for Swing/Day Trading
Key Observations:
* Trend: Clear bearish trend on the hourly chart with lower highs and lower lows.
* Support and Resistance:
* Immediate support at $435.0.
* Resistance at $440.0, aligned with GEX and trendline resistance.
* Indicators:
* EMA (9/21): Bearish alignment with EMAs trending down.
* MACD: Negative histogram and bearish crossover confirm selling pressure.
Swing/Day Trading Setup:
* Bullish:
* Entry: Above $440 with volume.
* Target: $445, with $437 as stop-loss.
* Bearish:
* Entry: Below $435.
* Target: $432 and $430, with a stop-loss above $437.
3. 2-Minute Chart for Scalping
Key Observations:
* Trend: Downtrend with immediate rejection near $437 and weak bounce attempts.
* Scalping Levels:
* Resistance: $437.85.
* Support: $435.0.
* Volume:
* Increased selling pressure near the close suggests continuation of bearish moves.
* Indicators:
* EMA (9/21): Dynamic resistance, reinforcing bearish structure.
* MACD: Bearish divergence near resistance confirms downtrend.
Scalping Strategy:
* Bullish:
* Entry: Break above $437.
* Target: $438.50.
* Stop-loss: Below $436.50.
* Bearish:
* Entry: Break below $435.
* Target: $433.50.
* Stop-loss: Above $435.50.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk appropriately before trading.
Gamma Levels and Key Insights:
* Support Levels:
* $432.5: Major put wall, indicating strong support for downside protection.
* $435.0: GEX9 level, minor support within the current range.
* Resistance Levels:
* $440.0: Significant call wall, indicating resistance for upward movement.
* $450.0: Highest positive NET GEX and a key resistance level above.
* IV and Sentiment:
* IVR: 37 suggests moderate implied volatility.
* Calls %: Low at 16%, showing bearish sentiment in the options market.
Options Strategy:
* Bullish:
* Long calls above $440. Breakout targets $445 and $450. Use $435 as stop-loss.
* Bearish:
* Buy puts below $432.50, targeting $430 and $427.
2. 1-Hour Chart for Swing/Day Trading
Key Observations:
* Trend: Clear bearish trend on the hourly chart with lower highs and lower lows.
* Support and Resistance:
* Immediate support at $435.0.
* Resistance at $440.0, aligned with GEX and trendline resistance.
* Indicators:
* EMA (9/21): Bearish alignment with EMAs trending down.
* MACD: Negative histogram and bearish crossover confirm selling pressure.
Swing/Day Trading Setup:
* Bullish:
* Entry: Above $440 with volume.
* Target: $445, with $437 as stop-loss.
* Bearish:
* Entry: Below $435.
* Target: $432 and $430, with a stop-loss above $437.
3. 2-Minute Chart for Scalping
Key Observations:
* Trend: Downtrend with immediate rejection near $437 and weak bounce attempts.
* Scalping Levels:
* Resistance: $437.85.
* Support: $435.0.
* Volume:
* Increased selling pressure near the close suggests continuation of bearish moves.
* Indicators:
* EMA (9/21): Dynamic resistance, reinforcing bearish structure.
* MACD: Bearish divergence near resistance confirms downtrend.
Scalping Strategy:
* Bullish:
* Entry: Break above $437.
* Target: $438.50.
* Stop-loss: Below $436.50.
* Bearish:
* Entry: Break below $435.
* Target: $433.50.
* Stop-loss: Above $435.50.
Disclaimer
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage risk appropriately before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.