An important concept in Trading the Post is determining important levels of support and resistance (price levels) and using them to make decisions. Over the last two days Ronchero suggested traders take a look at $FFTY for a potential feeler in this choppy market.
Reasons for a feeler:
- The YTD Anchored VWAP (white line) is coming to a level that aligns with the 200 SMA (red line)
- The Squeeze-O-Meter and Sweepers (order flow) indicated the potential for a move to the upside
- $FFTY trades at a cheaper price that allows smaller accounts to participate in its potentialmove
It is important to remember that when stocks reach important levels, traders need to establish “feeler” positions, and not jump in with immediately with full size:
We will keep watching how this develops. Follow us on Twitter or get updates by subscribing below.