I had two price alerts trigger right after the opening bell today. I was watching this beautiful bullish falling wedge pattern on FL (Foot Locker Inc) with price alert set on a break above the wedge (downtrend line). I was holding off since FL was scheduled to report earnings before the market open today & as I often the case, the stock experience a bullish gap in the direction indicated by the charts. FL is trading in “no-man’s land” now, smack between support & resistance while in the middle of a huge gap so an entry at this point is not objective. However, should the stock pullback to the 37.00 level before backfilling the gap -or- should FL continue to rally into the 44.75 resistance level very soon without any pullback or consolidation first, it could offer an objective long (just above 37) or short (just below 44.75) entry with a stop not too far on the other side of that support (or resistance) level.
FL daily Nov 17th
The other price alert was triggered on a break below intersecting support level on this 60-minute chart of one of the FAAMG stocks, MSFT. While the first 30-minute of trading is prone to an increased rate of whipsaw signals, I’m going to give MSFT a little time but might take a short position targeting a backfill of the big Oct 26/27 gap, should MSFT print a 60-minute candlestick close below 82.85 -and- the major indices, especially $NDX/QQQ, confirm. Should MSFT go on to backfill that gap, that would account for a drop of over 4% from current levels & almost certainly take the $NDX down with it as the FAAMG stocks all trade with a relatively tight correlation.
MSFT 60-min Nov 17th