Hi traders,

A big name just made the classic move I always watch for, and it set up my put trade for the week.

A stock trades down through support, then comes right back up to revisit the level it just broke. Plenty of people see that bounce and figure the selling is done. I read it as the opportunity.

This one has been in a downtrend since early August, and it never made it to the top of my pitchfork, which usually means it trades to the bottom. It did that and kept going. I’ve drawn a fresh pitchfork on the chart that shows where I think it heads next, and I’ll give you the price I’m targeting.

I’ve also got a name for calls. It rode my pitchfork all the way down, held a support level from May, and has now cleared every line I had on it, including the 20-day and the downtrend line I’ve been tracking since mid-August. I’ve got two levels above that I’m watching, and a target past both of them if the rally holds.

I’ll walk you through both charts and the exact levels in the video.

Licia Leslie