Hey, Ross here:
And let’s start the middle of the week with another actionable trade idea.
Chart of the Day
Adtalem Global Education Inc. (ATGE) has finally broken out of this range that it was stuck in since November of last year.
ATGE is an education program that offers a variety of segments for individuals seeking education in healthcare, counseling, and more. With over 100 online certificates, this is the perfect program for those interested in an online education seeking opportunity.
Price was stuck between the $35-$44 mark. With each tap to resistance it would fall and each drop to support it would rise. Now, as most seasoned investors would know, nothing ranges forever and trying to trade within the range is like playing blackjack.
Earnings are scheduled to be released tomorrow on August 10, 2023. Depending on what happens, this could set up to rally to all time highs from a few years ago.
So the game plan is to wait this one out and see. It has the volume and the market cap behind us and it has broken out and is trending above our short and medium term moving averages.
When earnings are released, if price can remain within this breakout range or possibly even retest the breakout level then this could set up as a buy at the $43.75 mark. A possible tight stop below the wedge low would be a safe bet for the stop loss.
Insight of the Day
The clickbait news can make pullbacks feel scarier than they actually are
Rally–pullback–rally. That’s the time-tested price pattern we see over and over again when the underlying upward trend is strong.
In those scenarios, pullbacks are an opportunity.
But here’s the thing – while you may logically realize them as an opportunity, it’s very difficult for them to emotionally feel like one.
One big reason for this is the clickbait news media, who never miss the chance to bombard you with exaggerated fear-mongering headlines every time the market pulls back.
So, if you’re feeling worried in the middle of a pullback, ask yourself – how much is logical, and how much is emotional?
Because as I said, pullbacks can be a fantastic opportunity to pick up fast-moving stocks at a discount right before they surge again.
That’s why my flagship strategy is explicitly designed to take advantage of the rally–pullback–rally pattern in individual stocks and target big gains in record time.
I believe this pattern will keep happening this year…
So, if you haven’t already, click here to add my flagship strategy into your trading arsenal now.
Embrace the surge,
Editor, Stock Surge Daily