Hey, Ross here:
Let’s start this Tuesday in the best way possible – with an actionable trade idea.
Chart of the Day
DraftKings is breaking out of a clean base in the beginning of a new Stage 2 uptrend.
The stock is up 13% this week but running into longer term resistance.
It is clear in the weekly chart below:
Ideally, DKNG would consolidate for a few days in the $21–$22 range to absorb any supply from sellers looking to exit near 52-week highs.
There are two places I would consider buying this stock…
First would be a breakout to new highs above $22 on above average volume. This would signal to me that funds are still buying heavy, and I would want to be along for the ride.
The other potential buy point would be a pullback into the moving averages and last week’s breakout area.
At $19–$20 a share, I would be a buyer in DKNG with a sell stop just beneath the 50-day moving average.
P.S. Want me to send you special trade prospects and potential market moves directly to your phone? Text the word ross to 74121.
Insight of the Day
Following trends extends to more than just price action.
When we traders hear the words “trend following”, our minds naturally think of price action.
We think about watching for signs of a coming breakout so we can jump onto the upward trend to reap fast gains.
But there’s more to trend following than just price action.
For instance, right now,the hottest trend in the market is earnings season. It’s absolutely dominating the news headlines – drowning out even the Fed.
And just like we shouldn’t ignore the opportunities that come from price trends, we also shouldn’t ignore the opportunities that come from earnings season.
Because trust me when I say earnings season may be the absolute best time of the year to make fast profits – regardless of what the Fed or the economy is doing.
That’s why I developed a complete system for playing the earnings season. This system stacks the odds in your favor by leveraging a powerful informational loophole only a few know about.
And I’m going LIVE right now to break down this earnings strategy and show you how to start applying it immediately.
Embrace the surge,
Editor, Stock Surge Daily