ICE has chart support on a variety of different timelines
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The shares of New York Stock Exchange (NYSE) operator Intercontinental Exchange Inc (NYSE:ICE) are breaking out of the downtrend that they’ve been in since early July. The equity also just cleared its 20-day moving average, which capped price action since its early August, post-earnings move. Adding to this bullish technical setup, ICE held its August 2023 and June 2023 peak level from the summer breakout, with additional support from its +10% year-to-date mark and its key 50-day trendline in place now.
On the hourly chart, Intercontinental Exchange stock is breaking above the 200-unit moving average, with the rising 20- and 50-unit trendlines trading just below. This mean a confluence of moving averages are in place to support price action higher.
The 120-strike call could act as a magnet while retail traders are short for the strike, before falling off post-September OPEX. Options traders are pricing in low volatility expectations, too, per ICE’s Schaeffer’s Volatility Index (SVI) of 16%, which ranks higher than just 12% of reading from the past 12 months.
Our recommended December call has a leverage ratio of 8.7 and will double on an 11.7% pop in the underlying security.