Hey everyone, this is Robert Roy from WealthBuildersHQ.com, and welcome to this edition of Trade With Rob, which is for April 8, 2021. So the markets just got closed up. Let’s go take a look at the S&P 500, and see what happened on the S&P today.

So you can see where the Fibonacci lies on the S&P 500. Here’s the V-bottom, here’s the V-top, a pullback to the .236, just gorgeous. Great setup. There’s the pullback to the .50, and the bounce, which shows us this upside-down H-pattern. Excellent moves on the S&P.

We got a quick breakout over here, we came back in, and the last week and a half, we’ve had very strong moves – all-time highs, all-time closing highs happening within the last coupe of days. So overall, how do we score it? It’s bullish. EXTREMELY bullish. Not to say that it stays there; that’s just what it means right now.

So, with that being said, what’s next? I want to identify a candidate, then, that will help us in this current market condition, and that candidate is going to be PayPal (PYPL). So let’s go back to the chart, and take a look at PayPal!

So what’s going on with PYPL? Once again, we’re going to want to draw the Fibs. Where are the Fibonaccis, where do they belong? Great V-top right in here, good, strong move down, a nice V-bottom before we rolled over and failed. Got a mini. H-pattern off of the .382, not a strong pattern off that level, but it’s the pattern that we were presented. We BURST right through the zero-line. Normally, we look for zero-line break outs that are possible, but we broke through, came back up, retested, and got a really nice fail in there right back to the .272. Then, we made a move up, pushed down again, and this catalyst has driven us up from where we were just a few days ago, a week ago, we were bearish – we are now bullish… to the tune that the current moving averages, are aligned in just about in a true, bull bias. True bullish pattern.

So what am I looking at now for PYPL? What am I looking for before I go “Ooo, oo, oooo! Pick me! Pick me!”? Ideally, what we are looking for is a stretch back to the zero-line in the next day or two, 251.42.

Now, you will make the ultimate decision of if you take an intraday bounce or are you waiting for it to close and bounce. That will be predicated based on your own personal risk profile and risk tolerance in the market. Period.

So that being said, if we take the bounce off of the 251.42 level, where are we going with it? Target 1 (T1) is going to be 264. T2 is at 272. The blue lines are our targets – not the Fib lines, the blue lines. Our stop would be at 247.50. So that’s why I want to see it pull back a little bit, so I have very limited risk in this trade overall.

“Rob, what if only have one contract in the trade?”

Then you get out at target 1, T1, which is 262. If you have multiple contracts, scale out of half of the trade at T1, and the other half of the trade at target 2.

And there you have it!