Gap up Fades, Current Rally Intact

Hi everyone,

I hope you are having a great Wednesday!

In this post I’ll concisely share my thoughts on the day’s action. And share a bunch of stock charts that caught my eye.

This report is brought to you by Deepvue - The Best Screening and Charting Platform for CANSLIM Position and Swing Traders

You can now try 2 Months of Deepvue for only $39 using the button below

Now let’s dive in ↓

---

Market Action

QQQ - The gap up faded before finding support and closing off lows. Ended up feeling like a consolidation day

IWO similar type action, essentially inside day

Can we push up through the moving averages after a pause? that will be the tell

Trends ( Based on QQQ)

Shortest - 10 Day EMA - Down - Below Declining

Short-term - 21 ema - Down - Below Declining

Intermediate term - 50 sma - Down - Below Declining

Longterm - 200 sma - Up - Above Rising

Group/Themes Action

Energy, Banks, utilities look strong, blockchain names pulled back

Key Stocks in Deepvue

NVDA rejected, negative for semis, looks like it needs more time

CRS inside day, earnings upcoming. Deepvue estimate is May 1

CPNG great action

HOOD back to the 50day but no real volume

WING still forming a base, strong prior trend

SMTC strong RS in Semi space

COIN negative day but no huge volume

Market Thoughts

Fade off the gap but decent close, see if we can build sideways. What would be great is to see some market pressure and then a rally, showing that institutions are stepping in again. Rally intact still for now.

Reminder:

Risk Management is Paramount

Refuse to enter randomly without managing risk and wait for the spots to develop, they will. Stocks during strong moves always pull back to the 21 ema, 50 sma multiple times. Look for a tight and logical entry point.

Have patience, focus on the best stocks with the greatest potential. These will telegraph the rest of the market.

Take it day by day and manage risk along the way. Be ready for anything

What are your thoughts on today’s action? (Leave a comment below)

---

This post was brought to you by Deepvue Charts. My Daily Driver for Charting, Alerts, Watchlist Management, and more!

I hope you found this article helpful!

Here is what you can do to help make them possible and support my work.

1. Leave a like on this post below

2. Subscribe to Trading Engineered

Cheers!

Richard


P.S. We just released a new free resource: The Ultimate Screening Guide

This will help you find top stocks faster and speed up your routines.