Taking a Long Position in $PTLA On A Pullback

Portola Pharmaceuticals has nearly everything I look for in a setup.



Portola Pharmaceuticals has nearly everything I look for in a setup.

A trade that has been working well recently is to buy pull backs into longer term uptrends, specifically when trendlines coincide with Fibonacci Retracement Levels. You can see above that PPTLA is in a longer term defined uptrend, and has sold off from its highs near $67. The sell off has taken a falling wedge shape and is near what may serve as completion of the pattern. Watch for one more pull back near the lower end of the apex, which just happens to coincide with the trendline and 38.2% Fibonacci retracement of the November to July rally.

Implied Vol is low and I am shopping January calls as we speak, looking for a bounce back to near $60.

omahacharts.com/single-post/2017/11/28/Do-You-See-The-Light

Trent J Smalley, CMT