After clearing prior highs at $19 and breaking the current range high at $20.50, there is very little resistance until the $24 area, so we might be able to hold on to the position for a 15% to 20% move.
We added to our current long position in Global X Social Media ETF (NASDAQ:SOCL) on Friday (entry #2), as it cleared the high of the bullish reversal candle on Dec. 18. Our first entry was on Dec. 8, as $SOCL climbed back of the 50-day MA.
The price action since Dec. 11 appears to be forming a handle. A handle is a tight range that is at least one week in length (can be several weeks or more) that develops usually 5% to 10% off a base high.
The current handle in $SOCL is eight days in length. Look for a breakout above the high of Dec. 10 to confirm the pattern.
Please note the lower entry price in the $PGJ buy setup on the watchlist above. $PSP paid out a 62 cent dividend last Friday, and we remain long with a dividend adjusted stop.
Our scans continue to produce bullish chart patterns, so with the market back in trend mode it is just a matter of waiting for low-risk entry points to develop.