Good evening StockBandits!
In life, we often don’t get second chances, much less third chances, but that’s exactly what the bulls have gotten with this 4-day bounce off Monday’s support test. Having failed on two previous attempts to clear recent resistance, they’re back again with renewed hope that this time maybe they can make it happen. Some are expecting another reversal, while others have finally come to expect a breakout. The only thing that’s for certain right now is that one side is set up for disappointment.
Uncertainty has been the norm for several weeks now, and we’ve gotten a number of directional changes along the way – each with convincing enthusiasm which simply fizzled out after a few days. That has conditioned many market participants to become skeptics, which isn’t necessarily a bad thing. It does create some room for the element of surprise, which many traders are currently discounting. That’s just how trading ranges work, because when you’re caught in them, you start to count on reversals and follow through becomes more of a fantasy than a reality.
At some point, we will see an exit occur. Perhaps now is that time, who is to say? All that you and I can do is to prepare for each upcoming day and then execute our plan accordingly. For me, that comes down to sifting through many, many charts and then evaluating the best setups I see for risk/reward and proximity to their respective resistance/support zones. At times that translates into more swing positions than others, but there are always opportunities of some sort.
Let’s get to the charts.
Bullish Watch (click for charts)
Bearish Watch (click for charts)
Trade Like A Bandit!
Jeff
