Top Trade Ideas - August 28th
What to watch ahead of the final week in August.
US stocks haven’t had the best time in August. They are on track for their first monthly decline since February.
Although this decline looks set in stone, equity futures have opened up green, so we could see some buyers step in the close the month out.
Early in the week, FX markets took their cue from movements in the equity markets. Yet Friday was all about Powell and the reaction in bond yields. Whipsaw price action eventually gave way to USD strength, putting several XUSD pairs on the edge of a late summer breakout.
Our first three equity ideas are in collaboration with a great technical analyst, Mr. Chuck Norris (@kholov23 on Twitter). Starting off, we have Pfizer.
Price recently broke out of a falling wedge pattern. After the breakout, the price retested the previous trend and held that level. This spot was also in confluence with the anchored volume-weighted average price (VWAP), shown via the red circle.
There is also a chance of a head and shoulders pattern playing out on the daily chart, retesting the 35.61 level.
TRADE IDEA - PFIZER LONG ON RETEST
Stop Loss: 34.50
Take Profit: 37.42/39.26
The next trade idea is Netflix. This has a similar setup to Pfizer after breaking out of a falling wedge and retesting trend. The current breakout has based at a crucial support level of 416 (previous strong support). Price is now back above the anchored VWAP, and RSI has crossed upwards on the daily chart.
We are still in a consolidation zone, but there is a potential for a break higher. An upside move would have us watch the 425.92 level and the anchored VWAP from the swing high (currently at 432.32).
TRADE IDEA - NETFLIX BASE
Stop Loss: 408.00
Take Profit: 425.92/432.32
Our final equity idea, in collaboration with @kholov23, takes a look at the Roblox weekly chart.
Price has been in a big decline but has now reached a strong support zone. RSI and MACD indicate an overextension on the weekly chart, with RSI also showing oversold on the daily timeframe.
A potential of an oversold bounce could see this name make a move to $30. However, a further upside move may target the anchored VWAP from all-time lows (currently at 36.84).
TRADE IDEA - ROBLOX OVERSOLD BOUNCE
Stop Loss: 25.30
Take Profit: 30/36.84
The rest of this article takes a look at two very popular EV names for long trades, as well as diving into the FX world for pairs to watch this week and trade ideas on several indices.
Keep reading with a 7-day free trial
Subscribe to AlphaPicks on Wall Street to keep reading this post and get 7 days of free access to the full post archives.