Hey everyone, Robert Roy from WealthBuildersHQ.com. Welcome to another edition of Trade With Rob. This edition is for Wednesday, July 21st 2021. Markets literally just closed up and looking at my clock it’s 4:04. I already had a candidate picked out for today. Now, keep in mind that the everything we look at today is for educational purposes only. Nothing is meant to be advice and or recommendations.
Alright, so with that let’s go ahead and jump in. The S&P 500 closed up today, what a great day. Nice recovery, we bounced back 64.5 points. Woah! What a day, baby! What a difference a day makes.
Well based on that, I really want to look at a bullish candidate today, and what we’re looking for is a company called BILL, which is Bill.com Holdings. And if we analyze first, what’s going on in the that chart with the fibs, well, I’ve got a great V-bottom in here and then strong move up. I’ve got that V-top, so there’s the clear path of the fib. We pulled down to the .618 we got upside down “h,” 2 standard deviation move, two lines, and then we fail. We actually make it into a little bit of a fib channel in here. We finally break this 159.50. Boom, boom, boom. Great bullish thrusting pattern in there. Couple of wicks pop their head above that zero line and they fail. “Here, kitty kitty kitty kitty kitty,” that’s what it’s meant to do. I don’t take the breakouts. I look for the close above, the retest – that’s what I want to see.
The next time we come above, we fail again. We come above over here right before that orange bar, and we pull back the next day on the day of the orange bar. Right we gap up here and then close back down below. Finally, today, we get what is a very clear close above our zero line, and I’m going to bring this in for you, and you could see the fib setup and where we are at. Great closing price there.
Now we’re ready, so it’s time to move. Now they’re still going to be some head faking here at least that’s what I’m looking for. I’m looking for a pullback to that zero line as an opportunity to take the bullish entry. Once we get to pull back to that 190.30, then and only then are we going to go ahead and consider taking the entry into that trade.
So now that we talked about the entry, I went ahead and added all of our stops, all of our targets on here. So what we’re looking for in an ideal world is a retest and a bounce, and there’s the entry. Target 1 is going to be at 200. Great level, good confluence there of a major, key level that we focus on which is 100-point levels, and then target 2 is at 211. Our stop is at 187. So here’s what happens: if the stock moves up and hits target one, we move our stop to just above break-even, which basically means it’s coming up above that 190.30 level. As we move up and hit target 2, we’re going to exit out of the second half of our trade, so we sell one half of the trade here, one half of the trade here. If it goes down and moves against us, we’re stopped out of the trade.
It’s as simple as that. Folks, it’s a great trade setup. Zero line breakout. It’s one that I created, developed, have tested and I mean, not only back-tested, but forward-tested for a good part of a year coming up with this strategy before I release it to my students. There you have it!