Daily Plan 4.23.24
Welcome back everyone!
First, we will cover the recap for today's session, then move on to tomorrow's analysis.
Indices:
The E-mini and Nasdaq opened the session in distinct zones, with the E-mini aiming to stay above the swing Value Area Low (VAL) and the Nasdaq trying to remain below the swing Value Area High (VAH). According to last night's video, I hoped to see the E-mini defend the VAL, setting the long level at 5007, which marked the Low of the Day (LOD) before rallying by 70 handles. Conversely, for the Nasdaq, I anticipated potential weakness below the VAH. This prediction materialized as the short level was established near the High of the Day (HOD) early in the session, resulting in a decline of over 100 handles before it later breached and failed to sustain a rally above the swing VAH.
Commodities:
Oil once again demonstrated strength with a rally that pushed above the lone level, although it fell short of reaching the target. The price has consistently held above the swing Value Area Low (VAL) and is now making its way back up toward the Value Area High (VAH).
Gold, on the other hand, continues to face downward pressure. The short level was established at the overnight high, and the short target was set at a key support level, which held throughout the session. However, after the close, there was a significant sell-off below the swing VAL. Overall, the price has declined by 68 handles from the short level, which marked the session's high.
Stocks:
AMZN and GOOGL were the strongest stocks in today's session, with their lows aligning at the designated long levels, leading to sharp upward movements to their highs. As I've mentioned before, I recommend avoiding shorts on the stronger stocks and expect them to be the strongest during a market bounce. This is precisely what occurred today, as these two stocks experienced the largest percentage gains into the close.
As anticipated, on a weekly timeframe, AMD has rallied up to the swing Value Area High (VAH), which has triggered a short setup that was highlighted in today's chat. As long as the price remains below the VAH, we could see continued selling down to the swing Value Area Low (VAL) and potentially even lower. In addition to this, TSLA experienced strong selling from the previous close, with over 9 handles of selling from the 147 short level. With earnings approaching, an expected move of +/-7% is anticipated, which is a significant fluctuation. Be sure to check the earnings section below to get my insights on the upcoming releases, as well as a few other stocks that have caught my attention.
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