"I predict the stock market will move tomorrow."
Everyone is trying to predict what the market will do. Well why not you do stand about a 50% of sounding like a market guru if you are right. Well today's post I'm going to give you the current intraday trading range for the SPY and LNKD (I am looking to trade this one as well) and then the rules of when I would go long or short. So the point is I'm not predicting the anything. I'm simply setting up parameters and rules to go long or short should the criteria be met.
Lets start with the SPY. We are in a trading range between 182.39 and 181.74. I would wait for a breakout one way or the other confirmed by high volume to validate the breakout. Typically, after the breakout you might see a test of the broken support or resistance before a continuation of the move in the direction of the breakout. Where do you exit? I would at 182.81 on a break of resistance as the next resistance area to access and 180.69 on a break of support.
Below is a chart of LNKD. I like LNKD for intraday trading simply because it moves. After it broke support of $201.50 (which is tested and continued down) LNKD fell into a trading range between $195.09 and $192.36. What is interesting to note is the amount of volume transacted at the lower end of the trading range today. It looks to be accumulation but the prudent thing to do is wait and see and look for volume confirmation of any break out of the trend. LNKD provides also a great risk/reward on any break intraday with next resistance at $201.5 and support at $183.68.
Lets see how my powers of prediction work out! Thanks for reading.
192.36, 195.09, 201.5