A really nice set up popped up on my morning scans and it checked all of the boxes. I have been warned before by Blane Markham about a flaw in my bullish MACD crossover approach. And it is a valid note of caution from a trader who is way smarter than me. But this chart would make both of us happy and shows the crossover, confirms it with a solid pattern and the RSI, and has a cheap, liquid option to leverage the move. Here’s the chart. You be the judge.

I love it when the MACD dips low and swings back up. To me it is showing an oversold situation and is a sign that the stock is finding support and rebounding. But Blane has warned me that I have to be mindful of the broader trend. You can get the bullish crossover even when it is still in a down trend. This is why this MRNA setup looks good. You have the crossover and we are also seeing higher highs and higher lows in the recent consolidation.

The Sept 21 65 calls are right around $4 and could provide a nice payout if the move continues. I would put a trade like this in a medium risk category and would allocate a position size accordingly. I wouldn’t bet the farm but I would take the trade. If you were unsure, you could watch how the next couple days play out to see if we get a bigger move through the 50 day average to confirm the move.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily