As I analyze the stock market this morning, I’m noticing some promising chart patterns, but I’m going to start with equities. It appears that the S&P hit a bottom a couple of weeks ago and has been steadily climbing since then. Although it faced some resistance just over a week ago, it continued to rise and recently broke through both that resistance area and the next one.
At the open, prices started off on a positive note, with some chop near the current price back in February. Despite this, things are looking strong overall, with futures also showing promise. Even if there is a slight pullback this morning, I remain optimistic that there will be further strength in the near future, potentially providing entry points for trading opportunities.
I’m going to start perusing stocks, now, and will add my individual stocks’ chart pattern analyses below as I come across them.
Stocks
NVDA – Long – This has been very strong. I had a solid trade in this last week, and today might provide another opportunity to get in. Price has made another push up since I exited my trade, reached ~$280, and stalled out around there. This morning, price opened at roughly that price, but is pulling back some. This pullback, on the 2h chart, is at a support area that was resistance last week, and I think I’m going to take another shot at the break of that level again. If the numbers are there.
I ran the numbers here, and there’s a strong resistance area going back several months, at that $280 area. R:R back to that level wasn’t there, but truthfully, I’m taking this trade with the expectation that this will push through that level. With that in mind, I looked at the next resistance area and had a decent R:R. It’s not amazing, so I took a smaller position size, but it looks very strong, so I want to take a shot.
META – Long – This has been pushing up steadily since last November, and really didn’t slow down much with the market at the beginning of this year. Price has been pushing up quite strong since the beginning of March, and made a new high this morning. From the high at the open, though, price has largely been pulling back since the open, which might be a great place to get in. I don’t see a pattern per-se on the 2h chart — and, technically, at this point, I might even consider that a reversal candle (spinning top), so, actually, I’ll hold off here.
ROKU – Long – This is interesting, so I want to talk about it. This hit a low at the end of last year, and pushed up strong through the first month+ of the year. There was a fairly deep pullback early-mid Feb. but then there was a HUGE spike over the next 3 days. From that spike (up to ~$76), price pulled back and through most of march stayed in a choppy range between roughly $60 and $68. This morning, price pushed up strong at the open, and took out the range highs, pushing above $68; but almost immediately has pulled back and is now sitting at the highs of that range.
Sheesh, there’s a LOT of chop here, and a lot of areas I could consider resistance where price could stall or I could put an entry order. But I don’t want to leave it alone, because it was such large break of a significant resistance area. Looking, again, at that prior spike in mid February, and it happened around earnings. There are more earnings at the end of this month, and it wouldn’t surprise me to see the same thing. The only thing is, my trading style doesn’t really allow for me to hold for that long… That said, pricing in is a thing, so I want to get in early — I just don’t want to get stopped out at break even or, worse, a full exit, just before price shoots up.
I think I’m just going to take a longer-term bias on this, have a wider stop, a smaller position size, and remember that I’m thinking about earnings here and have that play in to how I manage this trade.
ABNB – Long – this is another interesting one, and I think it might be worth it — especially if the market is in fact rallying. This had been pushing up strong since the beginning of the year, but peaked shortly after earnings mid-February. It pulled back from there, but since mid-March, this has made a new swing high, a higher low, and a subsequent higher high. It’s pulled back again today, but it’s yet another higher low, and looks like a good opportunity to get in. I’ve already run the numbers and like them, and since I have 2 other orders out, too, I’m also going to take a slightly smaller position size with this one. Cheers. I, also, think I’m going to stop here since that will put me at 3 entry orders on the day, and I don’t want to be overwhelmed if all 3+ trigger.