Hey traders, Kunal from Bulls on Wall Street here! We had an interesting day in the market with a strong gap-up followed by a fade. But despite that, we’re still seeing tons of great setups for day and swing traders. In this post, we’re breaking down the key stock setups to watch and how to navigate this market in the Goldilocks zone.
Market Overview
Today, the market opened strong with a gap-up but quickly faded by the end of the session. While that could have been discouraging, we still see great setups developing. The SPY and IWM are holding key support levels, which means that on an intermediate and long-term basis, the market still looks strong.
Top Stock Setups
- TSM: Taiwan Semiconductor had a strong breakout today but gave back gains by the close. Even so, the stock remains in play for day trades after its earnings report.
- Snow (SNOW): After a strong 20% rally, SNOW is pulling back into the bone zone, creating a nice setup for a potential bounce. This is definitely one to keep on your watchlist.
- Palo Alto Networks (PANW): High tight flag pattern developing here. Watch for a breakout above $380 for a potential explosive move.
- Bumble (BMBL): Still looking for a sign of life, but it’s on my watchlist. We need to see some options activity or volume before this can really move.
How to Trade Gap-Ups and Fades
Gap-up and fade days can be tricky, but don’t let them throw you off. We’re still in an uptrend and individual stock setups are ripe for trading. Make sure you stay flexible and ready to take advantage of weak opens and strong closes. We have some key stock setups for tomorrow and the coming week. Lets do this.
Tomorrow is Friday trade safe. Friday is usually the day where weird things happen! protect your capital.
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