Taking Profits and 2 New Tickers to Trade
Cashing in on the pull back and finding the next trades in SHOP and OXY.
More upside to start the year would have been nice, but I highlighted the rising wedge patterns in the semiconductor space for a reason.
Remember this chart for SMH and my forecast for a pull back?
You can check out every trading detail from that newsletter here.
The wedge did break as expected and shares of SMH have pulled back nearly to the 160.70 support level.
The 150-day simple moving average (SMA) can be found at this support level as well.
This pattern played out for a number of names and while some look like they will continue to break down, others have already rebounded.
We have an example of each, directly from the Jan 1st trade ideas newsletter (AMAT, MRVL).
Plus, I’ve added two more from my watchlist - SHOP & OXY.
I’m still watching semiconductor names closely, but there are better set ups and these two are A+.
SHOP looks ready to bounce and rip higher while OXY formed a familiar bearish pattern, signaling more selling to come.
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