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Analysis:

QBE is currently trading at $11.90.

QBE has been trading in an uptrend since its lows in February. Recently it has failed to stay through resistance at $12.50, forming a broad ascending triangle. Recently it returned to the trend line and today has it bouncing higher. It also bounced off the 100 day MA and has clear the 50 day MA. The next target is a retesting of the key resistance at $12.50.

To take advantage of this we could trade a Bull Call spread, where profit is made easily with a move back to $12.50. The position can be set up in a way where it also profits from sideward movement and time decay. If QBE does drift up slowly, or tracks along the trend line before moving higher, this will all lead to further profits.

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 off our website which runs through advanced strategies.