The correction continued last week for the NAZ as it made a new 8-week low. Meanwhile, the S&P failed its breakout in a big way, and former market leaders simply can’t catch a bid. It’s a great time for caution, which has been the message of late with the mixed market signals we’ve seen.
I reserve my daily trading plan for members of the site, but I wanted to share 5 setups of interest with you as we head into a new week of trading.
Put them on your radar and keep assessing them daily. As setups are negated or fail, seek out some replacements. As setups confirm their patterns, observe their price and volume behavior closely to gauge whether or not they still have some gas in the tank.
By the way, I do not have any positions in the stocks listed and am only interested in entries beyond the highlighted levels. Should price fail to push beyond the levels listed, I’ll take no action. Price provides the proof, then I make an entry. Here we go:
BBY has a big unfilled gap from January which it may attempt to partially fill if it can clear $28.30 to make a new recovery high.
WAG has created some short-term lower highs and the current bounce may have run its course. A break below the trend line at $65.60 opens the door for selling.
NEM has lifted from the March low but it has only seen a partial recovery. A break of rising support at $23.90 sets the stage for more downside.
DDD is still acting heavy and now faces key multi-month support. A new low at $54.50 would begin another leg to the downside.
FDO is trying to bounce here but just hasn’t found traction. The trend is down and a new low at $57.20 is likely to trigger more stops as price heads south.
Through the nightly service, I share swing trade setups with members here including my planned entry, stop, and target levels. Check out the trial if you’d like to kick the tires.
Trade Like a Bandit!
Jeff White
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