Stock futures are indecisive this morning after yesterday’s up-trend.
VCYT is showing all the oscillators in the green and closed above all the SMAs. Support is at the up trending 9-day SMA with resistance at 25.49. The past several days shows price action wicking down and then closing at the upper part of the candlestick so this gives traders a potential lower entry point. Price is above the cost basis at this point, so set appropriate stops to preserve gains.
IT was from the < 200 SMA stock list and had a full candle close above the 200-day SMA yesterday. Trading at 323.30, this is a pricey stock with a $6 upside potential to resistance at 329.46 and a $6 downside potential to support at the 200, it would be prudent to try to catch an entry price closer to the support in line with our view of range bound trading.
We have done well with SEDG utilizing range bound trading strategies over the past several days. Price closed at 303.07 yesterday. Resistance is at 309 ($6 potential upside) and support is at the 9-day SMA ($6.44 potential downside). Like IT above, traders may be able to catch a better price closer to the support level for better potential upside if this stock continues to trade in a range,
In a range-bound market, prices tend to move within a confined range, with limited upward or downward momentum. This can restrict the potential for significant price swings, which swing traders often rely on to capture profits. Consequently, swing traders may need to adjust their profit targets and be content with smaller gains within the range. Set tight stops with these positions.
Be patient and wait for the set-ups that meet your risk tolerance. Trading in a range-based market is difficult and there is no shame in waiting on the sideline. After all, a one-month T-bill is paying over 5%!
Have a great day.
This information is for educational purposes and is not a recommendation to buy or sell a security.
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