After some range bound action in the SPY, on June 27th, the SPY finally chose a direction and sold off hard, but not before stopping right near a support level at $241.50. With this in mind, our trading watchlist had a few names that looked ripe for a bounce. Particularly, we were looking for big name stocks that sold off right into a defined resistance level. On June 28th, we had a great day buying up NVDA and TSLA for a reversal trades.
NVDA is an incredibly strong stock that had a great run after releasing strong earnings back in early May. After hitting resistance at $160, it sold off for four days in a row but stopped right above its previous $146 support level. Now this looked like it could either flush down lower or bounce hard here. Watching intraday, we saw a fake break of the support level. Once the stock reversed from a red to green move, we bought long at $146.20 with a stop underneath. We rode it back up and sold it off at $151 .
Another great bounce play that was on our list was in TSLA. TSLA closed right at its 20EMA level after a hard flush in the last 2 days. With the moving average holding it up, we watched the stock in the morning looking for a red to green move or a bounce right at support. TSLA gapped up at the open and faded right to the previous day’s support level at $362.50. Once the pullback was sustained, we entered at $365.15 with a stop beneath the lows. We sold off our shares as we rode it up all the way to $371.18
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