The move Keith Harwood turned us onto last week played out nicely and is looking to continue. He also mentioned another potetial gainer that you can still jump in on.
He gave us a great update on the set up. Scroll down and check it out.
Keep learning and trade wisely,
Market Wealth Daily
|From Keith Harwood of OptionHotline…
One down (well, actually up), and one to go.
Last week, I highlighted two coils forming, and we got a resolution of one of them: the tech chart.
On Thursday, QQQ broke out of its coil. This was the setup I’ve been waiting for to look to add long positioning in tech, which has been a laggard and a somewhat forgotten sector for much of 2021. And now, we see what could be the beginning of the next leg in this bull trend thanks to the breakout from a tight coil last week:
A few notes on this move – the follow-up on the breakout tells me that others were certainly looking for a similar formation. Secondly, I can see now that we are already above the upper Bollinger Band, so there may be a bit of a pause for a day or two. But the end result here is that I am now looking for entry points in QQQ and its components as the ETF is trading above all the key Moving Averages that I watch after this breakout. This can quickly become a favorite sector of money-flow, as we have seen in the past few years. On the other hand, we have oil, which just hasn’t had the same move. At least, it hasn’t had the same move, yet. Last week, I highlighted that a similar coil was forming, but it had been over a shorter time period. Perhaps we simply need a bit more time for this coil to mature before we get a breakout like we just saw in the tech sector. For now, I’m watching closely as oil chops between the 50-Day Moving Average as a support line and the 20-Day Moving Average as resistance. Once that range breaks out (or breaks down), I would not be surprised to see the next leg of the oil trend:
It’s very clear that those traders that sold every rally in tech and oil and bought every dip were well rewarded for a few months. But, I think that trading style will shift now to the trend-follower, and that is a wonderful trade that can be leveraged with options. The second quarter is just getting started, but I’m very excited about what is already starting to develop. Make sure you all take a chance to review how I apply technical signals to my options trades at https://optionhotline.com, and if you have any questions, never hesitate to e-mail me.
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