It’s Rally Time - Shorter Term
Market looks like it put in a short term bottom at close today.
I did sell 2 $ABNB May 27 $107p at close for $4.05.
Why did I sell a cash secured put on $ABNB at close? Explanation below:
As you can see in the chart, $ABNB is oversold on RSI (Meaning RSI is under 30), volume is declining (meaning sellers are not as motivated), and it has put in two inverted hammer candles on the daily. These candlestick patterns are often trend reversal candles, so three confluences came together giving me the confidence to sell a cash secured put.