Merchants,
I’m excited to share my high swing buying and selling concepts for the week forward. Following the FED’s rate of interest determination on Wednesday, the market picked a path after an eight-day consolidation and relaxation interval, and my high concept from final week performed out exceptionally properly, with the semi-sector breaking out and following by means of immensely.
Because the market continues to surge to new heights, my focus is on recent 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 aspect and inside the setups which have been working for the final a number of months.
So, let’s get straight into it. I’ll share my high concepts and buying and selling plans for shares that would make vital directional strikes this week.
Consolidation Breakout in NTNX
It is a textbook consolidation sample in a inventory that has been in a gentle uptrend for fairly a while. The inventory has a historical past of regular, sustainable breakouts and continuation, so my timeframe right here will probably be as much as a full week, with a trailing cease, as I search for historical past to repeat itself.
*Please be aware that the costs and different statistics on this web page are hypothetical, and don’t mirror the influence, if any, of sure market components akin to liquidity, slippage and commissions.
Right here’s the plan:
From the day by day right down to the hourly chart, the timeframes and important ranges align, which I search for on this setup.
$65 is breakout affirmation, and I need 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 under the latest larger 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 probably be scaled out because the inventory makes considerably larger highs on the traded timeframe. The ultimate exit will probably be $70.
Consolidation Breakout in ARM
As soon as once more, it’s a improbable consolidation that has considerably contracted in vary. Whereas all of the speak has been in regards to 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 be aware that the costs and different statistics on this web page are hypothetical, and don’t mirror the influence, if any, of sure market components akin to liquidity, slippage and commissions.
Right here’s the plan:
Once more, a key space of $138 – $140 in a number of timeframes shines by means of as resistance. Subsequently, if the inventory, with authority, breaks above this zone with quantity and vital help, I will probably be excited about 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 diminished measurement and what I consider to be a large cease close to the day’s low ( that’s the place I might be unsuitable ). So, it’s a smaller measurement 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 may have some hassle. I plan to cowl as much as half of the place there, thereby locking in features and eradicating danger. My cease will probably be trailed up utilizing the 15-minute timeframe to larger lows. The ultimate goal is a transfer towards $160 – $164, though I can even be scaling out manually because the inventory makes new larger highs on the 15-minute timeframe and use my discretion to cease out manually ought to value motion change.
Two Extra Backburner Concepts:
YTEN: Focusing on a push again right into a provide zone of .55 – .65 for failure intraday and a brief alternative to journey it again right 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 in opposition to the excessive of the day, for a transfer again to the low $2s.