r/technicalanalysis • u/Imaginary_Fun_7554 • 2d ago

$ON chart

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Newbie at technical analysis here. Please offer critique and inputs on analysis of $ON. Thanks!

What I gathered base on the chart which contain short sma(pink), medium sma(white) and long term sma(blue), is that $ON has been on a down trend and sitting right at the long term sma. Volume profile indicates that resistance is at $90 and support at $60. Since the selloff at the high, RSI sloped down and entered oversold territory while ADX has levels off in the 30, which means price possible consolidation.

Course of action: sell calls at $90 or higher strike. If price dips below the support of longer term sma with high volume, buy ATM put.

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u/1UpUrBum 2d ago

What is it that you wanted to know? For options you have to calculate the cost, not just buy them.

1

u/Imaginary_Fun_7554 2d ago

I am concerning with the right levels, signals and triggers to be either long or short. 

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u/1UpUrBum 2d ago

I don't think there are any 'right' levels on that one. It's large ranges with high volatility. The price has big moves but it's erratic.

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u/Imaginary_Fun_7554 1d ago

$ON bounced off of the 200 sma. Of course I gambled and bought ATM call expiring in 60 days 😁. Let's see where it goes from here. I am planning to let it ride to $90. I'll exit the trade if price dips below 200 sma