1 hour ago
1
Traders,
I look forward to sharing some of my main focuses for the upcoming week with you all.
Let’s get right into it, beginning with the rotational story and latest theme to emerge: Software.
Continuation in Software, Main Watch MSFT: Really impressive continuation in software (IGV) over the last couple of weeks, which is why I continued to discuss MSFT in recent watchlists and IA meetings.
Specifically, I liked the reclaim in IGV (the sector) of key SMAs, and I liked the setup in MSFT the most. Why? MSFT broke its downtrend and reclaimed the 10-, 20-, and 100-day SMAs, which have been converging, and formed a strong consolidation with clear support and resistance. Thursday’s relative strength display was solid enough for entry, and Friday’s open and hold above resistance was what I wanted to see for confirmation and adds, as discussed during Thursday’s IA meeting. The first target for this swing is the 200-day SMA, in the high 450s. But as I mentioned previously, I am looking for a lengthy hold and, as such, opportunities to add via continuation entry opps.
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