TopOptionAlert
Oct 24, 8:56 PM
$CLSK NOV20 8C · still actionable
Zone:
$7.82 to
$7.94
Invalidation: close under
$7.60
Objectives:
$8.35, then
$8.75
The math: up 6.0% to the first objective and 11.0% to the second, against 3.6% risk on the invalidation, better than 3 to 1 to the second
Dear friend, picture a stock that has fallen almost half its value in a month and is now sitting right on the low it printed on Friday. That is the swing idea here, because a close above that low says the sellers finally ran out of room, while a close under 7.60 says the floor gave way and you step aside. If buyers defend this ground, the road back first runs to the Friday high and then to the October 21 close, which in plain terms means a small bounce still leaves real room above.
P.S. Watch 7.82 first. It was the Friday low, and holding above it keeps the bounce story alive.
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