We’re looking at LEI this morning as a possible bottom bounce play. The stock has been under general consolidation for the past couple of months, and is getting to a point where we want to begin monitoring for a recovery.
A glance at the chart below shows a few indicators ready to go bullish, and a stock that is trading very close to its 52-week lows. As you know, we’re always interested in stocks near their annual low points; the strategy has worked for us on countless occasions.
It appears LEI has a bit of resistance to contend with in the channel between .55 (July support level) and the 50DMA of .57, but beyond that, there isn’t a whole lot in the way of this thing testing previous highs in the .65-.70 range.
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Petroleo Brasiliero S.A. (Petrobras) PBR – Options Update
Our continual coverage of the PBR options chain has still yet to fail; if you recall, we were speculating on the 08/22 $15.50 and $16 Calls beginning on Friday, with the intent to execute a possible swing trade into this week. A move up that has PBR headed toward annual highs has facilitated quite the opportunity for us.
Those who were following along with our idea could have gotten in those $16’s at a low of .44 on Friday, and as of yesterday’s high of 1.28, the value of those contracts showed an overall increase of 190% Not bad at all for a span of only three sessions.
We also observed some abnormally high volume in the January $19 Calls as they traded over 48K contracts. We’ll want to radar these Calls as well.
For another potential short-term play, we’ll also have an eye on the $16.50 and $17.00 Weekly Calls.
Extended Watchlist:
FOLD, DGLY, NQ, HPJ