The Levels That Bounced 40% Last Week — And What's Next

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This is the trading playbook where the
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Hello everyone and welcome to the
trading playbook. My name is Lawton here
at Verified Investing, your host, and
happy Sunday.
I hope you guys are having a great
weekend. Before I go any further, a
couple things. If you didn't watch
yesterday's episode, go and watch
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Um but with that being said,
today we're talking again about
psychological levels. And you know, I
know it's not the most complicated um
the most complicated thing to kind of
understand, but
um they should provide and I'm going to
show you some amazing levels that they
played out this past week and a couple
more levels to watch this upcoming week.
With that being said, let's hop into
this week's plays.
So, moving right into it, we can go
through a couple examples. First off,
LITE, where did it go this week?
Where did was the low this week? Look at
that $600 level
hitting perfectly. And look at this
wonderful recovery from that
psychological $6 100 dollar level popped
29% guys. We can go down the list.
SanDisk, that key $1,000 level hitting
$1,000, then popped 40% guys.
Unbelievable. 40% bounce on SanDisk from
literally that $1,000
key level. So, these things work and I
can keep on going. Look at this on
Friday, Apple falling off of earnings,
bouncing where? The $300 level. We'll
see if that lasts. And then finally,
Nvidia
pushing up, bouncing, finding resistance
at the $200 level. But, you guys came
here for levels and that's what I'm
going to give you. So, with that being
said, let's hop back into plan A.
And for plan A, I am looking squarely at
Microsoft. Microsoft getting a nice
bounce off of earnings. Currently, you
know, up over 18% from its pre-earnings
level. Um as this continues to march up,
you're going to find resistance, of
course, at this gap fill right here.
But, if we're talking exclusively about
psychological levels, the $500 level
will be a key level of resistance. We've
seen this happen so much. Stocks push up
off of good levels and investors think,
"Well, I bought Microsoft. I'm up now.
Where should I take profits? 487? 495?
472?
No, I like 500 bucks. If I get to 500
bucks, I'll take my money. And you can
see that previously using back data that
we have continued to trade in and around
this $500 level.
Uh previously, I know it's just a
psychological number, but you can see
here
we traded around it here. We traded
around and consolidated around it here.
Same thing right here. Um and once we
lost it, we couldn't get back into it.
But, as we're pushing off and the
momentum continues off of these
earnings, guys, this $500 level is a key
level that I'm going to be watching this
upcoming week for a potential short. I
definitely believe that there's an
opportunity there, and if it ever hits
there, keep an eye out on um the live
day trading room track record cuz I'll
definitely be shorting it there.
All right? Next up, Tesla, which look at
this thing. Amazing bounce after
earnings. Where did it bounce? Guys,
$300.
Look at that beautiful bounce off of
psychological levels, and these aren't,
you know, these aren't severely
complicated levels. These are just
things that we our brains naturally are
drawn towards.
And from that $300 level, about a 5%
bounce. Wow, but what level should I
look for this week? Well, for me, I like
fives and 10s,
numbers that make sense in my brain.
$350 for me will be a massive level of
resistance as Tesla continues to push
up. Right? Continuing to break up here
and break this downtrend. It wouldn't
retrace all the way back to the
pre-earnings level. It would still be
about See here.
Still about be about 6% down, but if
Tesla continues to push up over the next
week, I certainly believe that $350
Excuse me, $350
will be the level and that is my plan B
there on Tesla. And then finally, time
for plan C. Let's talk a little bit
about Reddit that's coming down
violently here off of earnings, right?
Um
breaking and and we're going to put
together some some things that we've
we've previously learned. We can start
here but with using a trend line. Look
at this. Beautiful trend line was
finally broken, right? Could argue it's
a head and shoulders, but finally broke,
guys. And where did it find support at
$135?
Key psychological level there. For me
the level for this upcoming week
on Reddit
is going to be the $125
level.
I remember, guys, I like fives, tens,
right? But I also like fives, tens, 25s,
50s, and 100s, right? And and and this
25 125 will be a key key level here on
Reddit should we continue to fall. On
Friday, got as low as about 134, about
10 bucks away, but if we continue to see
a fall into the next coming days in this
upcoming week, I certainly believe that
125 should provide some support. Also
around there, you have
a gap fill here
around 124 and a pivot low here around
120. So, tons of support down there
along with that, you know,
aforementioned psychological level,
guys.
But
I'm going to go over a couple more
common playbook mistakes
so you guys aren't left uh in the dust.
So,
remember I said yesterday's episode not
every single psychological level is
created equal, and some take priority.
So, you might be thinking well, Lawton,
LITE is pushing out Look, it pulled back
past 5760.
Shouldn't that be a decent
psychological level? Yes, but our brains
when we're thinking about these things,
we don't default to every 10
necessarily. 10s are good, fives are
good, but we default to larger
denominations as the prices of the stock
continue to rise. So, when we get into
hundreds and hundreds of dollars worth
of stock, we default for it to 50s,
denominations of 50s
and 100s, right? So, for me, on LITE, if
you ask me, "Hey, maybe 760 is going to
be a level, 770, 780." Well, I would
say,
"How about 800?" That sounds a lot
better, and also feels a lot better in
our brains, right?
But, that being said, guys, that's all I
have for you today. Again, my name is
Lawton here with Verified Investing.
Please comment, like, subscribe to the
Verified Investing YouTube channel, and
guys, go check out mine and Garrett's
brand new service,
the Million Dollar Long-Term Investor.
Um I hope you have a wonderful rest of
your week. Let me know what trades
worked out, what didn't. Leave some
feedback, and I'm still taking ideas,
guys, for the next technical factors
that you guys want me to cover next
time. I hope you guys have a great rest
of your weekend, and I'll see you later.
Bye, guys.
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