It’s very important to always identify which timeframes we are extended on and which ones we are not. I do this by asking if we are extended from the 20sma or are we right on it? If we are far away from the 20sma, to me that signals that we are extended on that timeframe. It's pretty obvious on the monthly timeframe we are extended. Yes, there is substantial...
Tech has pulled back to areas of support and I will be watching to see if the recent lows hold from here. If they can, we may be able to put in a nice base here and have the potential for some nice longs in the sector.
Energy remains super strong and I still think it has the potential for more upside. You can see on $XLE that the $62 area is where I may think some resistance shows up. But if we pull back ahead of that, i still like the buying opps down around $51 (20d)
As per my strategy this trade has taken support on 50MA which provide boost to create an uptrend
VEDL has recovered from the oversold region on the RSI indicator. Also, a Golden cross might be seen on the MACD indicator in coming trading sessions. Pricing is holding above shorter and long-term moving averages. Longs can be taken with an SL of 249.
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