Merchants,
I’m excited to share my prime swing buying and selling concepts for the week forward. Following the FED’s rate of interest resolution on Wednesday, the market picked a course after an eight-day consolidation and relaxation interval, and my prime concept from final week performed out exceptionally properly, with the semi-sector breaking out and following via immensely.
Because the market continues to surge to new heights, my focus is on contemporary breakouts and momentum trades. Though I’m cautious right here, issues are starting to get overbought and a bit frothy. However till it stops working, my focus will stay on the lengthy facet and inside the setups which were working for the final a number of months.
So, let’s get straight into it. I’ll share my prime concepts and buying and selling plans for shares that might make important directional strikes this week.
Consolidation Breakout in NTNX
This can be a textbook consolidation sample in a inventory that has been in a gradual uptrend for fairly a while. The inventory has a historical past of regular, sustainable breakouts and continuation, so my timeframe right here will likely be as much as a full week, with a trailing cease, as I search for historical past to repeat itself.
*Please word that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to liquidity, slippage and commissions.
Right here’s the plan:
From the day by day all the way down to the hourly chart, the timeframes and demanding ranges align, which I search for on this setup.
$65 is breakout affirmation, and I wish to see the inventory break above and maintain above with authority. As soon as that’s confirmed, I’ll get lengthy with a cease on the low of the day or beneath the newest increased low on the 15-minute timeframe. I’ll handle the place on the 15-minute timeframe.
The lofty objective is a transfer to $70. Nevertheless, I plan to scale out of the place because the inventory trades up an ATR. So, I’ll cowl half of the place on a transfer towards $67.50, and the rest will likely be scaled out because the inventory makes considerably increased highs on the traded timeframe. The ultimate exit will likely be $70.
Consolidation Breakout in ARM
As soon as once more, it’s a unbelievable consolidation that has considerably contracted in vary. Whereas all of the speak has been concerning the lockup expiration, and bias shifted largely to favor the bears, the inventory has held agency and continued to consolidate. I’m unbiased and seeking to react solely to cost motion right here.
*Please word that the costs and different statistics on this web page are hypothetical, and don’t mirror the affect, if any, of sure market components corresponding to liquidity, slippage and commissions.
Right here’s the plan:
Once more, a key space of $138 – $140 in a number of timeframes shines via as resistance. Due to this fact, if the inventory, with authority, breaks above this zone with quantity and important assist, I will likely be interested by getting lengthy.
Particularly, I’ll look to get lengthy as soon as the inventory confirms an uptrend intraday and holds firmly above the intraday vwap. I’ll enter lengthy with decreased dimension and what I consider to be a large cease close to the day’s low ( that’s the place I might be fallacious ). So, it’s a smaller dimension and a large cease to let the concept play out with out over-managing it.
My first goal space is a transfer towards $145 – $150, the place the inventory might have some bother. I plan to cowl as much as half of the place there, thereby locking in positive factors and eradicating danger. My cease will likely be trailed up utilizing the 15-minute timeframe to increased lows. The ultimate goal is a transfer towards $160 – $164, though I will even be scaling out manually because the inventory makes new increased highs on the 15-minute timeframe and use my discretion to cease out manually ought to value motion change.
Two Further Backburner Concepts:
YTEN: Focusing on a push again right into a provide zone of .55 – .65 for failure intraday and a brief alternative to trip it again all the way down to the .30s.
BACK: I’m cautiously watching the inventory if it pushes again above $3, the realm of resistance from Friday, for failure intraday and a brief towards the excessive of the day, for a transfer again to the low $2s.
Vital Disclosures
