Tackle Today: Stocks test support
October 22, 2020
≈ A technical battle line has been drawn ≈
Traders,
Markets are mixed in trading Thursday in a wait and see approach. The technical battles that have developed over the last few weeks have been fascinating to watch. On the S&P 500 for example, intraday support has been tested several days in a row, but as of now it has held. Will support continue to hold? Much of that will depend on the catalysts, or lack thereof, over the next few days regarding earnings reports and fiscal stimulus.
The key for many traders will be to read the charts and build plans around support holding – or not. If support holds on the broad market and you get upward confirmation, there should be good bullish opportunities in the short term. If it fails, in the face of uncertainty, and prices break down, you could see bullish chart patterns move to neutral quickly.
What is your plan if support holds? What is your plan if it does not? Much of trading comes down to planning. You must know what you are going to do in either scenario, so that you can adjust quickly and manage your portfolio accordingly. Take some time today to plan your course of action.
#TeamTackle
Chart of the Day
Bitcoin Weekly Candlestick Chart
Bitcoin has been running this week on technical strength and positive news. The breakout on the weekly chart followed breakouts on the daily chart over the last few weeks.
Video of the day
Adding Seasonality to Your Stock Analysis
If you missed last night’s webinar, catch the replay here. Coach Noah teaches how to add seasonality to your stock analysis.
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.
Cashflow Club 8:30 PM EST
Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.
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.
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