$NWSA Unusual Option activity confirmed technically. Today, there was unusual option activity in the stock $NWSA, News Corporation. Someone this morning had bought 10000 option contracts of $ 2017-07-21 12.00 P BOT @ 0.55. Below, we will how step by step how this activity was confirmed with the IMTF™ Support/Resistances with Fibonacci and Ichimoku.
This activity initiated our technical analysis. The contracts were July options so we started our analysis on the Weekly timeframe since they were long term. Below is the weekly chart provided by Tradestation. It is pure price action with simple trend lines. Based on the chart, we are consolidating smaller and smaller.
Below is the same chart with Fibonacci replacements. It hows price has bounced off the 61% Fibonacci retracement and starting to move down to possibility retest the low.
Below is the same chart with IMTF™ with Fibonacci. First, price is in a green shaded area which is a Bullish Setup with Black Cross Resistance above price. It is not good that you have a IMTF™ Resistance in a bullish zone. This indicates a high probability of failure.
Second, the IMTF™ can be used with Fibonacci retracements for confirmation. Once price bounced off the 61.8% retracement value, a black cross developed two weeks ago. This confirms the high probability of this retracement value holding.
Below is everything now with Ichimoku. You have a bullish cloud strategy right now but a high probability to fail due to two things. One is the IMTF™ resistance. Second is due to the fact that the last two cloud strategies have failed. When they failed, they indicated that price will continue to consolidate until a cloud strategy breakout occurs.
Here is Elliott Wave from eSignal. The Black crosses are black squares.
In conclusion, technical analysis is confirmed the unusual put activity for this instrument. We offered illustrated two separate technical systems: Ichimoku and Fibonacci.
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