Monday, April 26, 2010

BPOP Bull Flag, Pennant Type Consolidation

I have owned BPOP jul $3.00 Call options for quite a while now along with some of you guys who took this trade with me. I followed the Whales on this and it has been paying us off beautifully. We have shaved some profits and will continue to do so. I am just pointing it out at this time, not to front run it, but to bring awareness to the chart. There has been continued accumulation in this names call options for quite a while now. Keep an eye on the chart as it has retraced 100% of last summers highs and continues to extend. We can see massive volume in early April after it broke an area of resistance at the end of March as depicted by the light blue line. At that time you can notice the volume started to pick up and then absolutely exploded. Now this stock appears to be resting via a pennant type or bull flag consolidation on lighter volume. Keep an eye for continued upside in this name. Watch the Volume for confirmation and conviction.

Next Targets

127% Fibonacci extension = $4.27
A/B Measured Move, the Flag Pole = $5.20
161.8% Fibonacci extension = 5.29

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