Hey, welcome everybody. Rob from WealthBuildersHQ.com and welcome to Trade With Rob. This update is for Friday, July 2, 2021. Let’s go ahead and take a look. First things first, we need to check out the S&P 500.
Markets just closed up, and I’ve got my candidates all set for tomorrow. So, we had a great, bullish move on the S&P 500. You can see right here, we’re up about 22.50 for the day, so, wonderful. All-time highs again, rockin’ and rolling. We have a lot of stocks that have already hit or are hanging on those highs, so we really have to find a candidate that fits our criteria and works, and if it’s not bullish, then we need to look for something that’s bearish.
…and PLAN is such a ticker symbol.
So on PLAN which is Anaplan…let’s analyze it first with our Fibonacci. Here is our V-top, here’s our V-bottom. What we’re looking at then is, we’ve got this nice move, a double-top, we broke the neck-line, and came back to the zero-line. See the importance there? We stretched down below just as we did here, and went HAH, and came right back up. This time, on earnings, we gapped down, pulled back up. We started to show some strength, and then we started to pin right in here between the 8 EMA and 55 EMA – the pink and the brown lines. And then we broke yesterday below that 53.71. Today, we retested and we failed.
So, what am I looking for? For an entry tomorrow, I’m looking for either a retest of that 53.71 – it doesn’t have to go all the way up there. If we could get a wick up there, I’d be very happy. It’ll shake out all the looky-loos. Or, a small move to the downside. Either works.
Our first target is 50. What does that mean, “first target?” If you buy only one options contract, you’re out at 50, the trade is over. If you buy multiple contracts, half of the trade is out at 50; the other half is going to be out at our next target which is 46.
So what we have is our initial stop set here at that 55.50 level. If it goes against us, we have our stop at 55.50 and we’re out of the trade. If we get to our first target, we’re going to move our stop down to below breakeven. So, no matter what, if it came back, you don’t want to have any cost associated with the trade, and it would stop you out if you got back to that level.