Hey everyone, Rob from WealthBuildersHQ.com. Welcome to another edition of Trade With Rob, which is for July 9, Friday, 2021. Now the markets are closed about 10 or 12 minutes or so. Let’s go ahead first and take a look at the market, then go back and check out our candidate.
So this is the market for today, 5-minute candle. Oh my goodness gracious, look at the gap down! Massive gap down today, good continuation, nice little channel in there before we got our breakout, and then what happened at our close? We closed up right about where we opened. So all that fighting today, up and down, up and down, we got nothing back from the open of the day; we’re right back where we started. But, we did climb up from some of the lows we had seen earlier.
With that, let’s go ahead now and take a look at our candidate today and see what we come up with…actually before I do that, let’s take a look at a daily chart.
Overall, life is good. We’re right at a Fib line, moving average in there. Nothing that says “oh my goodness, the world is coming to an end!” Nope, not at all. Nothing here. But, you need to know what the markets are doing in order to make some decisions on our stocks.
So with that, let’s go over to our candidate, which is AWK.
So, if we look first, we start off with our Fibs which we always do. Where do the Fibs go? Propper etiquette, my friends. Great V-bottom, nice move up, a little sideways there. Great V-top, came back to the .236 which is the hesitation level, and we’ve tried breaking through the zero-line before…here kitty kitty…and we go right back down. Yesterday, we broke through with a vengeance, and today we failed.
Normally, we look for a zero-line breakout, but today, we’re looking at an inverted/upside-down zero-line breakout. We’re looking to trade this bearish in this instance. It’s been a while since I’ve posted one of these that were inverted.
So, what are we looking at? The entry is going to be the critical part of this. You could take a small move down, although I’d rather not. I would prefer to get a move up near…it doesn’t have to hit 162.50…but I’d love it to get closer to that, and then fail off of there.
If it does, target 1 is 159.75. Sell half of your trade, and you’d move your stop down to breakeven (or just a little better than breakeven, actually), and you’d look for target 2, 156, to exit the second half of your trade. “But Rob, what if I only trade one contract, or I want to get out of everything all at once?” Then, sell everything at the first exit. Don’t go to the second exit. There’s a higher probability of risk by waiting until the second exit. We need to scale out of the first exit, which is how this trade is designed. If you are wrong right out of the box, then we have our stop set at 164 for that as well.