Back in early December, PL gave us a massive "change of character" gap-up (marked on the chart). It broke out of a base, surged on volume, and established a new trend. After running hard into the $30 range, the stock has spent the last few weeks digesting those gains, pulling back in an orderly fashion.
This pullback has now tagged the 50-day Moving Average (50MA)—the institutional support line.
As seen on the chart, price undercut the 50MA briefly and immediately found buyers, closing strong near the highs of the day. This "tennis ball" action off the 50MA suggests the smart money is defending their position.
With an RS Rating of 99, While the general market chops around, this leader is holding structure.
We are buying the bounce against the primary trend.
Buy Zone: $23.70 - $24.00. We want to see a push through today’s High of Day ($23.79) to confirm momentum is shifting back to the upside.
Stop Loss: $21.50. This places risk just below the Low of Day ($21.65) and the 50MA. If it loses the 50MA decisively, the thesis is broken.
Target 1: $28.00. First resistance at the top of the recent consolidation box.
Target 2: $30.00+. Blue sky breakout if the trend resumes fully.
This is a low-risk, high-reward entry on a proven market leader. We have a clear line in the sand at the 50MA.
This pullback has now tagged the 50-day Moving Average (50MA)—the institutional support line.
As seen on the chart, price undercut the 50MA briefly and immediately found buyers, closing strong near the highs of the day. This "tennis ball" action off the 50MA suggests the smart money is defending their position.
With an RS Rating of 99, While the general market chops around, this leader is holding structure.
We are buying the bounce against the primary trend.
Buy Zone: $23.70 - $24.00. We want to see a push through today’s High of Day ($23.79) to confirm momentum is shifting back to the upside.
Stop Loss: $21.50. This places risk just below the Low of Day ($21.65) and the 50MA. If it loses the 50MA decisively, the thesis is broken.
Target 1: $28.00. First resistance at the top of the recent consolidation box.
Target 2: $30.00+. Blue sky breakout if the trend resumes fully.
This is a low-risk, high-reward entry on a proven market leader. We have a clear line in the sand at the 50MA.
Catch the move before it happens - ft.wtf/subscribe
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Catch the move before it happens - ft.wtf/subscribe
Join 2,000+ traders.
Join 2,000+ traders.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.