ANNOUNCEMENT ::::: I am dragged into an important dossier in the first part of the week and because I do not have much to report on my counts, I will post Trent’s content and come back to you with my EWave piece later in the week.
WEEKLY STOCK PICKS
This past week, SONO put in a confirmation of a price movement above the downtrend that had plagued it since its IPO. With price firmly above the daily VPOC taking into account its full price history, we have a solid support level from which to take a long. I started a new stock position in SONO but options can be used for a trade as well.
DOCU after a nearly uninterrupted move higher thus far in 2019, has recently digested gains and looks to be ready to resume its uptrend. Last Wednesday the stock put in an initiative bullish candle in which the bottom aligns nicely with the 1 year VPOC. As it flags we can use those levels just below for support. Watch for DOCU to find its way to 60 in the coming months giving us an attractive risk reward setup.
One of my favorite setups out there right now, NBEV is displaying a bullish pennant look. Most recently the stock gapped higher on heavy volume putting in an initiative bullish candle. Price now sits at the mid point of the bands and near the base of that candle. Price could potentially trade lower into the lower rising trendline. This week I will start half of a position at these prices and half should price come into the lower trendline.
SCWX is a good example of a setup we like to trade. A bull flag pattern where the apex of the pattern is near a substantial support level such as the VPOC on the daily. There is room for this one to fall closer to the lower bound and from there we have a perfect level from which we can get long.
SQ is another example of a stock that went on a tear higher in 2019 and has recently stopped to consolidate gains. As it draws to the end of this mini symmetrical triangle pattern supported by the 1 year VPOC, we should expect to see SQ break out higher. Watch your calendar option traders as SQ reports the first week of May.