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Today we are considering applying a Bull Call Spread on Flight Centre Travel Group Ltd (FLT)

Analysis:

FLT is currently trading at $44.69.

FLT has been trading in a channel pattern since late last year. Recently it travelled to the top of the channel and today it looks like it has broken the resistance. You may wish to wait for further confirmation prior to trading though. It also may be completing an inverse head and shoulders pattern, which is another bullish sign.

If we believe FLT is likely to continue higher and perhaps start trading in an uptrend, we can look to trade a Bull Call spread. The reason why it may be wise to choose this strategy over another is because it can benefit from both bullish and sidewards movement. If FLT continues to drift, we can actually profit from simply being in the trade. We would like to see it higher, but we have the flexibility of waiting for the move.

If you would like to learn how and when to use this strategy, and other strategies like it, then please contact us here at TradersCircle on 03 8080 5788. Alternately, you can download a free eBook by clicking here which runs through advanced strategies.