Hey everyone, this is Robert Roy, founder of WealthBuildersHQ.com, and welcome to this edition of Trade With Rob, which is for Tuesday, April 13, 2021. Hope you all had a fantastic trading day today. The markets just closed up, so the first thing I want to do, let’s go take a look at the S&P 500.
So, great bullish move on the overall market. For those of you who are brand new, welcome! The first thing we do is analyze the S&P, looking at the Fibonnaci first. We are waiting for a new V-top; we don’t have one yet, so we are not in a position to draw a new Fibonnaci yet, so we’re working with the existing one that we have. So life is good. I mean, we’re in an overall STRONG, STRONG, STRONG, bullish, thrust pattern. Bullish thrust, exactly what we see here. Strong move, we don’t see any black candles/any down days except early in the pattern and this one doji a few days ago. Other than that, nothing.
So with that being said, let’s go ahead and take it back then to our candidate of the day which is INFO. Let’s go back to our charts and let’s look at INFO…
Let’s look at the Fibonnaci, and for those of who that have been with me for awhile, this may look like a strange pattern, or strange place from which we’re considering this trade. Here’s our V-top, here’s our V-bottom, sideways, sideways, and boom – good pop. A little sideways move, and then we have had a great trending pattern off of that 8 EMA, and later on, on the 5 EMA, the faint, blue line that is in the background.
We broke out above the 1-line, not the 0-line, which is a slightly different setup than what we’ve seen in a 0-line breakout. We’ve come back up, and we don’t really have a great place to draw from yet, and we might just be testing from this point, but this breakout, retest, and a bounce today is a great setup.
It’s funny, I had two choices yesterday (Friday) and LABU, which is the one I chose, moving in our direction extremely well if you saw that and took that trade today, and the other one was INFO. It did exactly what I wanted – it came back, retested, and took a bounce.
So here’s what I’m looking at. Since we really haven’t broken out of this level before, and this was our first attempt – a good one by close Friday and today above that level – I like very much where it’s at…so here’s what we’re looking for. Let me go ahead and set up some targets and some stops for you.
The very first things we’re going to do is to go to $105, which is our first target, and our stop is going to be down here around $100.50. And there it is. So, what are we looking for tomorrow? Since we’ve already made the move up, it’s hard to take a continuation pattern from this. What I’m looking for is a pullback. I don’t need it to come all the way back to that 101.50, but I sure wouldn’t mind for it to come back down to 102 or so or 101.75, but give me a pullback tomorrow and bounce, which will help me reduce the amount of risk I have in this trade. If I can get that setup in there, then fantastic. We’ll be looking at the 105 level as our target. There’s your stop at 100.5.
Ladies and gentlemen, there you have it!