Stock market correction are never ‘easy’ for traders.
But market volatility creates both short-term and longer-term opportunities. The former due to wide price swings and the latter when strong stocks are on sale.
Today, we look at some stocks that have interesting setups, and warrant putting on your radar through this stock market correction.
The first is Square (SQ). The stock is testing this major resistance from late 2018.
Can it break through? It really lagged payments and growth in 2019. If it can’t break through, you can make the argument this is a range and there is risk down to the 50s
On the recent selloff in Nvidia (NVDA), it became a fake breakout of the 2018 highs. That’s important because the 2018 high is one of the larger divergence peaks you’ll see.
The risk-reward clearly favors the bears until this breaks new highs or tests the bottom of the range or the 200 week moving average
Alibaba (BABA) is trading in what appears to be a bullish consolidation. Does this consolidation hold and continue in a move higher? 227 would clear the prior swing high.
Can software leader Alteryx (AYX) break to new highs? Or is this a double top?
Many software names have similar looks and extremely high valuations. The stocks have been able to shrug off valuation concerns time and again, but an exogenous shock is the type of thing that can lead to re-ratings.
Zillow Group (ZG) is holding a long time pivot level.
The recent earnings reaction sent it to all time highs and now shares are re-testing the breakout area. The downside risk couldn’t be more well defined for bulls.
Thanks for reading. Trade ‘em well.
Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.