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Today we are applying a Bear Put on Australia and New Zealand Banking Group (ANZ) which has broken out of a consolidation pattern today.

Analysis:

ANZ is currently trading at $27.87.

ANZ is providing strong bearish entry signals today as it breaks the short term consolidation pattern. You can see this defined in the chart by the channel between ~$28 and ~$28.80. The break today continues the short term downtrend line, and gives the indication ANZ could head back down towards the next support of at least ~$27.50. Though as you can see, ANZ can drift in one direction or the other for a period of time, so we could look to employ a Bear Put spread.

The Bear Put spread if set up correctly will profit from both bearish and sidewards movement. If we see a sudden drop to support, we can close the trade for a nice profit, but if it take its time on the way down, we actually profit for just being the trade.