Technical Analysis: 

Rejected at 200D SMA with bearish engulfing candlestick reversal pattern. Expect to move in bearish direction to the next support of $120. Medium term range bound between $120 and $130.

Fundamental Analysis:

Trade Setup

• Strategy: Short Term Directional Bearish Trade.
• Target: $120
• Short Call Spread BA 125/130 Oct 2014 (2 contracts)
• Max gain @ expiration $536
• Max loss @ expiration $464
• B/E @ expiration $127.65
• Reward vs Risk (RoC) = 1.15
• Probability OTM (short leg) = 43.69%
• Profit target = $364 (at $120 support)
• Exit Conditions:
  • When there is a trend reversal at the support ($120)
  • Break $130 resistance.
  • Reach 80% of Max Profit (ie. $429)

Original Post by Marubozu My Stocks Investing Journey