Last week’s rally cleared the downtrend line of the pullback, forcing the 10-day MA and 20-day EMA to turn up. The 20-day EMA is still below the 50-day MA, and the 50-day MA has yet to turn up, so there is still plenty of work ahead.
On the individual stock side, we are monitoring a few “A-rated” stocks for pullback entries ($AMBA $TSLA $PANW).
We have one new buy setup in China Bak Battery ($CBAK). This is a “blast off” trade setup.
The blast off is a very simple concept. We look for a monster move in terms of price and volume action through the 50-day MA, which is normally going sideways (the stock is in consolidation mode). Once the initial surge is over, we wait for the price and volume action to settle down for a few weeks to produce a reliable entry point.
This article is brought to you courtesy of Morpheus Trading, LLC.