Fed Powell speaks today so I won’t be adding any paper trade positions.
ADBE closed down for a third day with a tight trading range above the 9-day SMA. The SS had a negative crossover and the RSI ticked down a bit. With a cost basis of 363.19, we will want to defend our gains on the 1/2 position we have left. Knowing the 9-day SMA will most likely be support based on chart history, a stop could be placed between the 9 and cost basis to preserve the gain or you could wait for a full candle close below the 9 and exit the position there, however this may provide a loss. It depends on the individuals risk tolerance level.
SFM traded above the 50-day SMA but fails to close above that level for a third day in a row. We also see a negative crossover of the SS and a slight rollover of the RSI. We also have an engulfing candlestick pattern, which is bearish. Following a clear uptrend, we see two candlesticks where the real body of the second completely envelops the body of the first, showing that the bears have taken over from the bulls. The 9-day SMA should act as support so a stop will be in place just as ADBE above.
WELL failed to close above the 9 or 200-day SMA with a flat MACD, descending RSI and a negative crossover of the SS, so a position was never initiated and will fall off the watchlist.
PSN closed down yesterday on light volume after closing up 4 days in a row. The RSI had a slight rollover but is still above the 50 level. I’d like to see more upside momentum and increased volume prior to entering this position. The 20-day EMA should offer a line of support followed by the 9 which is where you will most likely find orders to enter the position.
BMY closed above the 200-day SMA yesterday but failed to close over the 50-day SMA which will provide a level of resistance. A close above the 50 would be positive.
This information is for educational purposes only and is not a recommendation to buy or sell a security.
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