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Today we are applying a Bear Put on AGL Energy Limited (AGL) which has out of a pennant pattern today.

Analysis:

AGL is currently trading at $20.14

AGL has been trading in a downtrend since its highs in May, categorized by lower peaks and troughs. AGL recently returned back to the trend line and bounced, creating potentially another peak. AGL is also bouncing from the 200MA and has plenty of room to fall back down towards support at $19.30

The Bear Put will profit from a quick notch down, but also profit from sidewards movement. If it drifts, it simply means we have the time to wait for the fall and profit from being in the trade.