Traders,

There are dozens of patterns that have been identified and cataloged. But perhaps none is as ubiquitous as the bull retracement. It has synonyms, not a few. Bull pullback, swing buy, buy the dip, etc. Because the S&P 500 notched a higher high last week and just carved out its third straight down day, many stocks currently offer bull retracement setups. Disney is one of my favorites going into Wednesday’s trading session.

Here’s what I like.

1. First, the daily uptrend increased in momentum during the last advance.
2. Second, there was a positive response to the recent earnings report.
3. Third, prices have retreated for five consecutive days toward support.
4. Fourth, there’s a confluence of potential support zones near $114. This includes the 20-day moving average, a gap fill, and old pivot highs.
5. Fifth, volume swelled during the upswing and shrunk during the pullback.
6. Sixth, with a properly placed stop, the reward to risk ratio is over 2 to 1.

Now, all we need is a trigger. Some traders would consider using Tuesday’s high of $116.37. Make it happen, Mickey.

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Video Of The Day: Gino’s Gems: How to chart the option price (and how to chart options spreads) on #thinkorswim

In today’s Gino’s Gems, Coach Gino Poore answers a YouTube comment on how to chart the option price and also how to chart #options spreads on Thinkorswim (TOS) #tradinghacks

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Chart of the Day: Disney ($DIS)

Take a picture. This is a textbook bull retracement pattern.

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Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode where Coache Tyler Craig and Frank Martin talked about Finding Trades to Play Right Now or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Trade Masters 7:00 PM EST

Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.

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Trading Justice 490: Interview with Larry Sprung

In this episode, we bring Larry Sprung, Founder at Mitlin Financial Inc® to discuss market volatility, teaching kids about money, entrepreneur mindset, and mental health awareness.

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