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Today we are looking at applying a Bull Call Spread on WiseTech Global (WTC)

Analysis:

WTC is currently trading at $29.75.

WTC has been trading in an ascending channel since its lows in March last year. Recently, it has tracked sidewards and fallen to the trend line, with today showing a clear bounce from it. Both the stochastic oscillators and the break of the 100 day MA helps confirm the bullish move.

WTC looks ready to continue higher, but because it has tracked sidewards in recent history, it is important to hedge for sideward movement. A Bull Call spread can achieve this if set up correctly. It will profit from bullish movement, profiting well with a move back to key resistance near $32.40. It will also profit from sideward movement, giving us flexibility and the ability to wait for the move up.

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.