Another week where the markert is still in an uptrend. I’m seeing a lot of charts forming nice patterns that look interesting for a possible trade.
Besides that I notice that lot of breakouts are not able to really push much higher lately.
For me it means reducing my profit target per trade a little.
Not swinging for the moon, but taking decent profits sometimes a little early. Just to be sure.
When I reduce my profit target I also reduce my stop risks. Because if I’m winning less I need to risk less in order to have my risk:reward ratio in place.
For transparancy to you: I’m currently long ENTG, QRVO, LRCX, SGH, SQ.
I don’t recommend chasing those stocks from current price levels. Only for QRVO and SQ I still believe they’re close enough to my buy point which could offer a buy oppurtinity if it fits your own criteria off course.
Since I already have 5 open positions I’m not looking to add anyhting aggressively as I want to be able to keep focus on my positions.
Only if it is really looking strong and adds value to my account I might consider buying a starter position. Or off course if I’m stopped out of any of my positions first which would free up some capital.
So let’s go over some charts that I find interesting and that came up during my weekend research.
The personal newsflash mentioned in the title will follow at the bottom, so scroll down if you can’t wait.
First one is FUTU. A great former runner that I traded several time before.
You can still seem my previous entry point from the end of December 2020 and the run afterwards.
Since topping from that run it traded down back to it’s 50-day MA and shortly below that.
After a profit-taking consolidation period it is now looking to form a new pattern to break out further.
If it continues breaking the trendline on the chart on strong volume it would be an early entry point for me. Although there is still some upwards resistance from the previous top.
So for the more patient traders that are looking for real confirmation you can wait for FUTU to reach a new high as well. You might miss a nice profit but it could still be a good entry.
Wichever fits your strategy is the way to go.
Next up is YETI. Also a solid company with good fundamentals that I’ve been watching for a while now.
It has been trading around the 50-day MA for about 3 months now and it starts to look like it setting itself up to go higher from here.
YETI is trading a kind of bullish inverted head-and-shoulder pattern. With volume slightly increasing the last trading days it looks like something could be happening with this one soon as well.
FND is showing a massive volume spike last Friday. It traded far above average and managed to break through it’s resistance level.
The stock has been trading sidewards for a while now and lately the volatiltiy has been contracting. Ending now in a bullish breakout.
The retail and housing sector are in strong demand which support FND too.
APAM is showing a similar chart pattern. Do you already notice what my strategy is looking for?
Indeed; strong breakouts from a solid formed base.
APAM is showing just that. After a nice run higher it has been building a base since the beginning of 2021.
It has formed a strong resistance line that is going to be my trigger point for a potential buy.
Before APAM will break out it might retest the resistance level again and forms a shorter handle-type base as well.
Or it will gain enough traction and buying volume coming in to push it through the resistance instantly.
Either way this looks good to me and I’ll be watching it’s action closely.
MU is another example of a stong company that showed great returns last months.
After the big run since November it has had a short consolidation nearing the 50-day MA.
It is trading just under the resistance level since releasing it’s earnings report. it looks like it is building traction to prepare for a breakout.
MU is part of the semiconductor sector that is in strong demand as well.
BLD
PRFT
NCR
So again I see a lot of good setups, which never mean they are good trades as well. Always wait for the confirmation and do your own research.
Determine your risk before buying and protect your account.
Newsflash: I’ve shared in the beginning of this year that I was going to build a trading course.
I noticed that I have a lot of ideas, knowledge and experience to share but am struggling to bundle it all together in a good format to share with the world.
That’s why I decided to start working with an experienced coach to help me with that. At the end of April I’m starting a program together with him to work on my course.
So let me know if you are interested in getting to know more about it. In that case I’ll be sending out regular updates on my progress.
Good luck this week, and don’t forget to let me know what’s on your watchlist!