Hey everyone, Robert Roy, founder of WealthBuildersHQ.com – welcome to this edition of Trade With Rob, which is for April 19, 2021. Here it is a Sunday afternoon, just kind of chilling out, taking it easy, going through some charts for potential setups for tomorrow, and I came up with one that looks like a really good opportunity, if we get the move we want for tomorrow.
So the very first thing is, let’s go take a look at the S&P 500 and see what’s going on there. So, we broke above this black line, which is the 4181 Fibonacci level. It’s part of the Fibonacci number series that most traders will have no clue about. They’re looking at the 4200 level; they’re not looking at the 4181 because they don’t know what it is. But, human nature tells us to stop, to hesitate around these types of levels, and that’s exactly what happened. We closed at 4185.47. So overall, Fib is exactly the same. V-bottom, same as the last one, the last couple of videos that we’ve done. We’re looking for a new V-top. Once we can finally get a new top, we can draw a new Fib, but we’re just not there yet.
Lots of hesitation is going to be seen 4181, 4182.07-ish level, because we’ve got 4181, 4200, 4207 level all sitting on top of one another. I mean, smack-dab there. We don’t have anything until 4285 as our next upside. So overall, I’m liking very much where the S&P is. We may get a little bit of a sidestep for a day or so, we’ll see, but let’s go check out candidate today and see what that candidate is for us, and today it is AEE – is the ticker symbol.
And remember: Wealth Builders HQ, I pick one candidate out for you for Trade With Rob every single time we do this, which is 2-5 times per week, and we look for one candidate that has the best opportunity to be setting up.
So with that, let’s go back to the charts and let’s go ahead and look at AEE.
So if we look at the Fibonacci on AEE, the Trade With Rob candidate for today, here’s our V-bottom, a good strong move, sideways, sideways…there we go, a clean, clear, concise V-top. We broke out of this zero-line – and that’s what this trade is that we look at most of the days is, what I call this trade, a zero-line breakout trade. We broke out of this zero-line and got a quick fail. We broke out again, got a quick fail. The next time we did it, we pushed up and we ran into this 86.25 level, which is the -0.136, and now we pulled back, and now we’re back up again. And yesterday, we broke above – we closed at 84.25.
So what I’d like to see happen is, in an ideal world, we go up a little bit first and pull back, but you may not get that opportunity…you make a small move to the upside and that’s it, that’s going to be your only chance, your only opportunity… but a pullback and a bounce off of that 83.96 level will always be a welcome choice, in my opinion, for taking that trade.
So what are we looking at then? Our stop is set down here around $83. Our target 1, T1, is $85.75.
“But, Rob, what if I only take one contract?”
Then, exit the entire trade there.
Target 2, you’re going to get out at $88. So we’re getting in at $84, getting out at $85, and the second half of the trade, we’re getting out at $88. Great opportunity if we get the setup we’re looking for over the next day or two.
Alright, there you have it, ladies and gentlemen!