Active-Trader - PANW Fiblines revisited

Welcome back Active Traders and Wealth Builders.

Recall in my prior post here, I ended up on the wrong end of an Iron Condor trade after PANW reported earnings back in early September

At that point, I put the top of wave 1 (the 100% line) at just under $80 and the $161.5% line at about $102 and change.  Since then, look how beautifully PANW has held up against these levels:

1) Bounced back to the lower treeline at $87.65, almost to the tick.

2) Rallied up from that point and found resistance just above the lower snow line, then got caught in a congestion zone between the 161.5% fire line and the above snow line.

3) Next it rallied up to the upper snow line and got caught in another congestion zone between 2 upper snow lines

4) Finally yesterday (the day before earnings) it broke the upper snow line and tipped through the next upper tree line.

As to how I played it, I have been long the stock since the low $100's.  Going into earnings, I sold the 105/107 119/121 condor for a credit of 0.75.  At this point, my short strike at 119 is underwater, but I'm going to give it until Friday and look for a close below $119 to bring in max profit on the trade.

Now you may look at the above chart and make the point that any arbitrary lines drawn on chart might also show the same relationships.  You may be right about that, however keep in mind these levels were know in advance.  Similarly, the chart shows we have important resistance overhead at $125.6 and $140.11, levels at which the stock has not yet traded.  So (unlike at lot of technical analysis) voodoo is a forward-looking indicator.

Nobody can predict the future, but Voodoo comes about as close as anything I can find.

Happy Thanksgiving to all of my loyal blog readers.  Enjoy the fruits of your labors, you deserve it!