A confluence of moving averages could serve as a launch pad
Subscribers to Schaeffer’s Weekend Trader options recommendation service received this TSCO commentary on Sunday night, along with a detailed options trade recommendation — including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
After breaking out from a downtrend and retest, Tractor Supply Co (NASDAQ:TSCO) stock just pulled back to a confluence of moving averages – namely, the 20-, 50-, and 80-day trendlines – that could act as a launch pad. The shares are pushing back above a 50% Fibonacci retracement level from recent peaks to lows after retesting it early in the week, while the $265 area, a pivot point through summer trading, held strong earlier last week. Given this solid technical foundation, we’re recommending a long position on TSCO.
Our recommended November call has a leverage ratio of 8.2, and will double on a 12.5% rise in the underlying shares.