Two Trade Setups To Take Now
By Wed, Jul 24, 2019
The first trade setup to note is on the stock MU. Shares of Micron Tech (MU) are up a whopping 50% in the last month. Investors are constantly wondering where to short this overbought semiconductor stock. The answer is… “not quite yet!” The stock is currently trading near $48/share and the top traders in the world plan on shorting it at $49.50. The reason this price point is on high alert is that the level is made up of an epic gap fill and a measured move – very important Technical Analysis factors. Add in to that equation multiple extreme overbought indicators, and swing traders are presented with an amazing risk/reward short setup on Micron Tech (MU) at that level.
The second trade setup is on the stock, NIO. Shares of NIO Inc (NIO) ran from $2.30 to $4.00 recently. After two weeks of consolidation, the Chinese electric car maker appears to be headed for another big leg higher. With a beautiful bull flag on the daily chart, a necktie has also formed between the 20 and 50 day moving averages. This adds extra spice to the propulsion of NIO. The stock is surging today and likely will take out the $4.00 high, headed over $5.00.
About the Author
Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial adviser but his heart was always in swing and day trading. He had this long standing belief that he could help investors make more money by advising them on shorter term investments (holding a stock for days to weeks) than the buy and hold crowd who lost 50% of their money during every market collapse. “Why not profit during the bear markets just like the bull markets”, he said. While helping others gain financial independence during the day, he spent his nights studying charts and price action, developing a unique market trading system that put his profits on a rocket ship. Some nights he would barely sleep when he found a new technique that was proven, once back-tested.
