MM21 - Support Levels I Am Watching This Week
Reminder - Not financial advice.
I wanted to give you an updated look at support and resistance on the stocks we have all been tracking. The market has broken down, and I want to show you exactly where my levels are so you can follow along, practice, and learn how I came up with them.
Let me start with QQQ. We have broken down below critical support at 580 and we are sitting right on it. Yes, we are still below the 200 moving average. But here is what is fascinating. We broke below, came right back above, and now this is our line in the sand. We are either going to roll back over quickly and head down, or we are going to regain the 200 moving average, close above it, and come back into a nice trading range to stabilize.
A lot of leading stocks are starting to turn back up. But more importantly, I want to show you the next levels where I will consider buying. This is what I do. I make a plan, I stick to it, I have my levels ready, and I execute. If you watched MM17, you know I walk through this exact process every single day in about 30 minutes.
Let me start with Google. When I originally placed my first trade, we had support at $295. I said if that breaks, we are going right to the 200 moving average support in the $270 to $275 area, which was why I prefaced that it was a tiny opening position. That is exactly where we went. And I added more because that was my plan. I mentioned it weeks ago and now Iām following through. We held not only the $270 support but also the 200 moving average. This was, as I have referenced multiple times, a cherry on top setup. -2.5 mean reversion, support at $270, and the 200 moving average all lining up. It was a beautiful, clean entry.
Now here is the key. Notice where we just stopped. Old support, new resistance at $295. I talk about this all the time in my courses. We need to get back above and close back above 295. If that does not hold...