Morning Scoop
Had a mixed day yesterday, with some stocks showing strong moves while others remained relatively unchanged. However, this is not unexpected as price movements in the stock market are characterized by periods of ups, downs, and sideways movements. After a significant move like the one we’ve experienced recently, it’s healthy for stocks to pull back, as this provides more buying opportunities to continue riding the trend.
Markets
📈📉 S&P 500 Futures Update
We are approaching the last swing highs area from February, as we went almost straight up from $4000 to $4150. It’s important to note that the market may need a breather here, and some sideways action or chop wouldn’t be the worst thing.
🔮 Forecast
As we discussed earlier, the price of this asset has surged rapidly and this is evident from the zoomed-in view on the 4-hour chart. The white line depicts the sharp upward movement which has now hit the resistance zone. With such a steep momentum, we can anticipate a slowdown in the near future and the price to retrace back towards the 200 moving average. This could potentially offer us a chance to ride the next wave.
Chart Analysis
Tesla experienced a drop for the majority of yesterday’s session, as shown on the top of the one-minute chart. Price kept pushing lower throughout the day, but towards the end of the day, there was a change in character. The price was able to recapture its 200 moving average, and this morning, it’s opening up higher. These are great characteristics to see. We want the price to slowly trickle lower but keep making a push towards the highs. This is how bullish price action is made: a series of higher highs with lower lows. It’s important to note that this needs to keep happening on higher time frames, as that has a much more significant impact than just one day of one-minute candles.
Wrap-up
Today, my focus is on TSLA, NFLX, and AMD. I have them on my watchlist and I’ll wait for the right opportunities to present themselves. It’s important to stick to your trading plan and go with the trend instead of fighting it.
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