The current trend channel appears to be the predominant trend that has formed over the last few months with the 20, 50 and 100 day moving averages all running parallel. Where the 20dma maintained as the default buy the dip zone it appears we have undercut it too much and now the 50dma is in play and eventually the 100dma. With the sharp correction just coming short of the 50dma I expect the 50dma to eventually be tested and that is where I will be looking at another long entry, currently with volatility being so high calls are expensive and typically when retests are made volatility will have reduced making call options cheaper improving risk/reward.
A very simple way to manage risk would be to take a small position at the 20dma, medium position at the 50dma and large position at the 100dma. This strategy would remain valid until the 50 & 100 dma lose their current trend. Sell when the top zone is hit and hedge with long volatility.
A very simple way to manage risk would be to take a small position at the 20dma, medium position at the 50dma and large position at the 100dma. This strategy would remain valid until the 50 & 100 dma lose their current trend. Sell when the top zone is hit and hedge with long volatility.