When we spotted this move a week ago, it was a reliable pattern that clued us in on it. TAN, the clean energy ETF had dipped and then started to recover and we saw the Bullish MACD Crossover set up on the chart. (check it out here).
We had other factors that confirmed this was an early sign of a great set up. Take a look at the chart today.
While TAN has been in a very gradual downtrend since last December, it has provided some nice pullbacks and recoveries that have set up lucrative trading opportunities. And, the MACD has telegraphed those moves nicely.
We can see the 200 day Moving Average as a point of resistance and can expect a refill to that point again. Grabbing a call option with a 78 will still only cost you a little more than $1 and is a good way to take advantage of this move.
Keep learning and trade wisely,
Market Wealth Daily