Symantec Corporation (SYMC) is setting up for a picturesque trade known as a Bollinger band squeeze. This happens when Bollinger bands contract due to low price volatility. They are based on the standard deviation of price change. When the price doesn’t change or fluctuate – they contract. This particular strategy is very popular because it’s easy. A lot of traders do it and know about it, so it kind of becomes a self fulfilling prophecy.
KEY LEVELS
A close above $24.95 would ensure a high probable trade and that’s the best we can hope for when trading the market. The stock has recently been in a nice, healthy bullish trend. If you know how to switch to a weekly chart, you can easily see a pennant pattern for the recent month with declining volume.
THE PLAY
This indicates if SYMC breaks bullish, it would be a continuation pattern and a strong one at that. This looks like an exciting trade. Next target would be around $25.40 then potentially $29.80, or one could have a goal of 20%-40% ROI on an option trade.
Get in, get out, take your profit!
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