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A lot of buy signals are being triggered in stocks that may be due for oversold bounces. Yesterday I made a call on two inverse commodity ETF’s that were ready for a bounce. They both stopped out on the open today. There can be conflicting signals at a turning point in a stock, a tight sell stop is the key to trading the price and not the stock as mentioned before.
The market has been in a prolonged up turn and ETF’s have been hurt badly by correlation factors being questioned by media and the Federal Reserve. Still, There are many of these that would like to go the other way. I’ll just list a few of them that came up on the stock scanner before I go into a buy call on LRN. Keep an eye out on these ETF’s if a turn comes in the market, even for just a single correction day, they are poised to rebound just as fast as mull lower and a nice trade could be had. Here they are- SMN, DUG, ERY, MZZ, ZSL, DZZ, TYP, TZA.
LRN has created a trading opportunity by testing its 30 minute MACD crossing and holding price. The low that it tested at 15.75 was .0874 cents off a complete 62% Fibonacci retracement at 15.83. Calculate this from the low of 11.95 to the high of 22.18.
We will use the trading low of 15.75 as our stop loss level. The magnitude of the move from 15.75 to the trading high of 17.00, before the retest of the MACD cross and 15.75 low, will be wave 1. If LRN holds this trading low could trade to 18.545 and 20.2725. These projections will be followed in the trade alert link below.
The short term trade analysis for LRN is being tracked in its trading alerts page.