Good evening StockBandits!
The market ended last week on a slightly upbeat note, but all in all it was a quiet week. The pullback from the early-April highs continued on Monday and Tuesday, but from there the market was able to stabilize for the remainder of the week. Net changes from the prior Friday were all negative, but less than 1% in each of the indexes.
Currently, the bulls have a great opportunity to step in and help to confirm a higher low on the daily charts. We’ve seen a multi-week rest, not only with some lateral price from late-March into the first week of April, but also with a mild pullback which has since followed. Should the buyers step in here, we aren’t far from the recent highs (or 52-week highs), and stocks could quickly gather momentum if strength returns.
The rest phase has made for very few plays outside of a day trading timeframe, but at the same time it’s been a very productive stretch for many charts which are building some higher-quality bases. The larger bases are best for multi-day plays, and with many multi-week patterns now starting to mature, we could see quite a few swing trades coming to light in the days ahead. I’ll of course monitor the earnings calendars closely (as should you) in order to avoid any surprises, but if this market can start to show some better follow through, many stocks have potential to make meaningful moves after the recent period of indecision.
Finally, I’ll be doing a webinar this Tuesday night at 8pm ET, and I hope you can join us! Here’s the link where you’ll see details & be able to register for 30min of stock & pattern discussion, followed by 15min of Q&A.
I’ll cover my game plan for tomorrow in the video, and as always, feel free to share your own thoughts, trade ideas, and questions down below in the comments section.
Here is tonight’s video:
The Bandit Broadcast Video – Click to Watch!
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Video Stocks Discussed: RAX, MELI, FOSL, JDSU, CLF, BWA
Swing Trading Candidates:
BWA recently sold off 7 of 8 sessions right to an area of support. It appears to be stabilizing here, so I like the risk/reward here for a turn back up ahead of earnings (Thurs, April 28) if the stock can clear the steep trend line at $72.50. As with all swing trades, my stop and target levels for this stock are on the Hit List here inside the Hideout.
The Hit List is a separate post which contains discussion on open positions and swing trade stops and targets, so be sure to check it for further details on swing trades.
