Resilient
A close above the 21 ema
The Market:
The market described in one word this week would have to be resilient. With tons of “bad news” this week like the 9.1% print on CPI, the market had every chance to roll over, but didn’t. Despite the Nasdaq being down slightly on the week, it managed to close above its 21 ema and make a second higher low. An encouraging sign that we may get a tradeable rally.
The downside however is we are still below a downward sloping 50 day moving average and have net new lows across the board for 25 straight days. The net new lows did however decline significantly on Friday; a step in the right direction.
Secondary Indicators:
Put Call Ratio: Neutral reading at .74
Percent of Stocks above the 50 day: Nasdaq - 39.5% S&P - 27.6%
Percent of Stock above the 200 day: Nasdaq - 18.2% S&P - 18.0%
Leaders:
AGL, CELH, EVH, FNKO, GTLB, HALO, HRMY, LI, LNTH, OPCH, PRVA
https://www.tradingview.com/watchlists/84325802/
Actionable Ideas:
OPCH - Failed Breakout Pullback - ~ $29.50 (to learn more about this set up, check out my deep dive here.)
Broke out today on strong volume. Will be watching for a failed breakout pullback to the 21 ema within the next 10 trading days.
GTLB - Mini Coil - $56.60
After finding support near its 21 ema all week a nice mini coil has formed. No real shaper base is the biggest flaw.
LI - High Tight Flag - $41.49
3 weeks into its flag from its high tight flag, nice tight weekly close. Lots of eyes on this one though, still expecting a shakeout.
HRMY - Mini Coil - $55.12
Broke out a few weeks ago and has been holding near highs. A mini coil formed with todays bar finishing in the range from 2 days ago. Also on watch for a failed breakout pullback to the 21 ema after breaking prior highs a few days ago.
OLPX - Moving Average Resistance Failure - $15.79
7 weeks into a 25% deep base after a nice 48% uptrend. Adaptive relative strength trying to come on, moving averages starting to trend up, nice volume pattern recently with higher volume up days.
The content presented is for informational and educational purposes only. Nothing contained in this newsletter should be construed as financial advice or a recommendation to buy or sell any security. Please do your own due diligence or contact a licensed financial advisor as participating in the financial markets involves risk.