We started positions in ETSY and NFLX, two examples of recent potential follow-through trades that have seen buying activity at a major support level. ETSY is also on the weekly watchlist.
ETSY looked very promising on Sunday when we chose it as a new potential trade adding to the watchlist for the week. It was a false starter on Tuesday. The stock witnessed buyers on the 21d on Wednesday. Price action caught our attention, so we’re swinging the position into today’s opening bell.
RSI is above 50 and turning higher, so we’ll look for MACD to turn with price action today. A move above 79.00 is the first hurdle as overzealous bagholders likely got stuck there on Tuesday.
Look for volume to pick up. RVOL should be above 2.0.
Netflix popped up on our radar as alerts started going off. The stock is off pre-market so the 50d is a stop.
The volume started picking up as well, and above-average during the session. RVOL or relative volume was noticeable at the key 50d moving average. MACD will turn as a function of price as RSI heads towards 50.
While a reversal at the 50d alone is not a guarantee the stock would continue, price action on the 5 min chart confirmed a powerful reversal was being supported by interested traders and investors.
The stock is trading 414.40 pre-market, so we have a profit and will take some off at the open if momentum reverses today.
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