Not every trade works out as I want it to be.
In the case of FFIV, I have a SHORT Vertical PUT spread the day it gaps down.
My view at that time is:
- Gap down with bearish indication; price below kumo
- Price will find it hard to go above resistance
Unfortunately, the price action do not work out as I want it to be.
The price break out of resistance 3 days back on Feb 2 and I was out when it break the resistance.
The next resistance for FFIV is around $124. As the price is inside the kumo, which represents a trendless state, I would prefer to step aside to monitor its price movement. That is also where the Kijun sen is now.
If the price breaks without convincing volume, be prepared for a possible sharp pullback.