Starbucks will do down short-midterm

Today I entered into a put option position on Starbucks expecting a pullback to the 79-84 area. (golden pocket and .5 retracement level)

Some reasons:
- Bearish divergence on medium time frame oscillators
- Resistance levels noted on the chart as trend lines

It appears that Starbucks may be forming a head and shoulders pattern as well, I plan to hold some of my position in case this pattern plays out.

Goodluck!

Commento:

I am not a pro with head and shoulders, so I am not sure if I can draw the pattern without the wicks like I did for the march 2020 bottom. I figured that was a black swan event so I could alter the pattern slightly to fit my bias.

Regardless, let me know what you think about my head and shoulder pattern!

Trade attivo

Commento:

Dovish Fed pushed the market higher but I think this is a dumb money rally. Smart money is has been existing for a week now. (hedge funds)