Hi Folks!
Last week we reviewed the current market environment, made note of upcoming earning releases, and took a look at one of my favorite indicators, $NYMO and $NAMO.
This week we will update our observations from last week and look ahead into this week, reviewing three new trading setups to put on your watchlist!
Last week we identified a potential area of new support for the S&P 500 and made note of it on the weekly timeframe chart. This spot did turn into new support staging a 5.85% rally on the week. This move surely exceeded the expectation of most traders.
The strength and speed of this move sets up a bullish case and a potential continuation of trend moving forward. The market never makes it easy though. Lets take a look at what $NYMO and $NAMO are telling us now.
Referring back to $NYMO and $NAMO, these now shows a technical overbought market condition.
Now that $NYMO and $NAMO are back into overbought conditions a pullback might be necessary to allow for new setups to emerge and reduce short term risk to the downside.
I'll share 3 quality long setups that I'm eyeing up in the short term. The idea here is to stalk these setups, wait for the market to come to you and don't FOMO over an entry!
$NVDA (long setup) $NVDA made a strong 2b reversal after Tuesday's failed breakdown through support. Weekly charts are firming up nicely in bullish flag type pattern.
First Target $500
$CRWD (long setup) A cyber security play that made new 52 week highs 2 weeks ago and is now pulling back in a constructive manner.
Target: $190 to $200
$DELL (long setup) forming a bullish consolidation here after the recent PEG. Bearish Distribution Looking for a potential breakout this week.
Target: $80
You'll notice that all of these setups have recently posted a Power Earnings Gap. When I look for setups I watch my Power Earnings Gap watchlist and sort the strongest swing trading setups from there. Here is a post with different types of strategies for Power Earnings Gaps setups. Learn them and get good at them! YOU can create many bread and butter type strategies out of Power Earnings gaps alone!
Alright folks, I hope you found this market update and stocks to watch post helpful!
Cheers and happy trading!
Art of Trading
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