SPX Pullback Ahead? Short Setups in Nvidia, Tesla & Quantum Stocks

Each afternoon, real setups are broken down with entry strategies and the technical reasoning behind every trade. This is today's best trade setups with Verified Investing. Welcome to today's best trade setups. My name is Benjamin Pool, head trader here at Verified Investing. Um I'm still a little bit under the weather. I can't really accelerate my voice, so please bear with me while I'm going through these charts. The first chart we're going to go ahead and look at is SPX. It is getting a nice bit to the upside. I do have this up-sloping trend line that I'm watching. 70,000 or excuse me, 7,000 $70 is what I'm looking for for a potential move to the upside on uh at the SPX. So, we're still in this parallel channel. Um this is with the pivot top, secondary hit, third hit. If price action can bust back up to about 70,000, excuse me, 7,070 bucks, this would be the fourth hit of this up-sloping trend line. This up-sloping trend line has proven that it's going to be a lot of resistance on the chart of the SPX. Now that we're above the midline, once it does hit that trend line, I do anticipate a pullback to about the midline of this parallel channel, which would take it back back past $7,000 and right down to about 6,940 dollars depending on when it hits this midline of this parallel channel. So, overall, I do think that we're getting overly extended on to the upside on the SPX, but it's due for a pullback. I did have a couple people mention, let me go ahead and remove all these drawings real quick. Had mentioned that mine and Gareth's trades or trend lines are a little bit different. So, what I'm going to do is I'm going to take this trend tool, parallel channel, take it to these pivot lows, and see if we can continue find another parallel channel on the charts. So, here is another parallel channel that you can draw based on this low pivot here and the secondary pivot. Now, you notice there's not a lot of price action in the midline of this parallel channel, but it's pretty solid to where my level of the midline was. This is just one tool that we use. It's not a guarantee that the midline or the upper end or the lower end of the parallel channels are going to get hit perfectly. But look, you can extend this up a little bit more. And actually, inside of this, you can actually put on the 25% and the 75% retracements inside of these parallel channels as well. So, these are just guide posts for us to give us an indication of where the potential trend is happening and where potential reversal is. An up-sloping trend line is great. An up-sloping parallel channel is fantastic. However, we also use horizontal support and resistance. So, for example, this is a trend line, but look at all this additional support. You have this pivot top right in this area to get us give us a little bit more information that, "Okay, this is going to be a solid level." And it just happens to be the lower end of the parallel channel that was created here. The again, these are just tools that we use. There's no guarantees one way or another if they're going to actually hold, but it's just a guideline for us to determine where the potential reversals are going to be. All right, let's go ahead and jump into the USO. I'm actually going to go back in here. Put all these lines back on my charts. Okay, there we go. So, this gives you an idea where the trend line was. Midline is pretty solid as far as where the trend line used to be as well. Okay, now let's go ahead and jump into USO. US oil was getting a nice bit to the upside. It didn't get up to my upside target of a 129 dollars and 83 cents. That is a level that I'm looking at for US oil to get to, and that is my shortable level today if it can get up there on a day on for a day trade. On the downside, we need some really positive news for the US oil trade, and it could head all the way back down to about 113 dollars and 39 cents. This is the only level that I'd be really interested in playing this for a day trade just because of the volatility that can happen if you get some positive news. Look what happened from the pivot top here. You had a 10% move to the downside. And then it closed here, and then look at where it opened the following day. It closed 8%. So, from this current position right now, that'd be about a 9% move to the downside. So, this would be the only level, again, that I'd be interested in playing this for a long. LITE did push above 900 bucks today. This was a stock that was moving. So, I did mention 815 dollars and 75 cents a couple days ago on LITE. I was not willing to play this yesterday because it got close to this level at 834 dollars. It doesn't seem like a big move to the downside, but it also got close there, got close again, and then all of a sudden it got down to close to 800 bucks before getting this huge move to the upside. So, what I'm looking at, first level of resistance that's already been tagged today is 896 dollars and 2 cents. Next level of resistance is going to be this 900 dollar level, which again has already been tagged. So, for today, what I would be looking for is a pierce of 904.99 on a day trade basis to enter a trade. If it does close above that on a 15-minute closing basis, I would actually look to stop out. And then your next level of resistance, you're going to have some at 809 or 810, and then a little bit more at about 813. I would actually be looking for this high pivot point at 931 dollars and 49 cents. I may have said 800 here, but I meant 911 dollars and 908 dollars here. But this is the level the secondary level that I'd look to re-enter a short if I did get stopped out here on a 15-minute closing basis at 904.99. Overall, this is getting more overextended. But look at how supportive this midline of the parallel channel was, and now that it's gotten hit so many times, it does start to favor a pullback. This 815 dollar and 75 cent level is off of the table. So, now what I'd be looking for is this up-sloping parallel channel, the lower end of this up-sloping parallel channel. So, if price action can get back in to about 726 dollars and 69 cents, this is where I'd be looking to pick this up for not only a day trade, but a potential swing trade. Knowing Knowing that I could average in at 649 dollars and 56 cents, or if I'm a little bit less aggressive, I could always stop out of this position if it does close below the um lower end of this parallel channel. On a technical basis, this does favor a nice bounce to the upside, so 726.69 would be your entry price for a swing trade. Couple different levels, obviously, that we're looking for day trades. But for me, a day trade, I'm not going to go long on a day trade for something like this. Nvidia was having a nice push to the upside. I did mention 199.05 all the way up to about 201.03. Got close to just pierced 200 bucks. Got this nice sell-off yesterday. Look at the fall. So, this is the price action that I really like to see. And then it got again close to this 201.02 level. This was a prior gap in the charts that I liked to see, and I would like to see Nvidia get up to today. If we can get this push to this upside after this fall, this would be about a two and a half 2.6% move to the upside. I wouldn't be looking for a substantial pullback if it does get up to that level. But I what I would do is wait for a break above this, and then you could look for additional selling pressure. Um look for about a dollar 50, maybe, on the price action to the downside. And that's for those of you who are aggressive because I got really close to that level in the first place, and it's not making a huge move to the upside. So, 203 is that next level of resistance. But for me, I would be looking at 206.88. And this is the beginning points, again, um if you're already short for a long or a for a swing trade, this could be an add level at 206.88. Again, it's getting overly extended knowing that you've got this double top area just below 212 dollars and 40 cents. I think Nvidia is going to eventually roll over. You should get about a 10% pullback from these levels. Doesn't necessarily mean it's going to happen tomorrow, but that's my overall outlook on the price action of Nvidia. Bloom Energy had a nice level. I did mention that your first level of resistance was going to be about 225 dollars or 226.73 because that was a pre-market high. And then that's what happened. It got up a little bit uh more than that. Got up to about 230 dollars. I did not enter this trade. 240 dollars and 82 cents was that level that I was targeting for an entry price, and then all of a sudden it put in a topping tail. We're starting to get a little bit of a retrace. So, if you're interested in learning how to take a swing short on a stock that's parabolic to the upside, you look for these reversal candles, right? What we're going to do is see this topping tail and identify where potential entry price is. The closing price was here, right here at 214 dollars or 213 dollars. So, that is in the lower 25% of the entire candle. The wick itself or the upper end is greater than 50% of the entire candle. That means that it it is above 220 dollars and 35 cents. So, this gives me an indication that this is a valid topping tail, and it's at the highs end of high end of the charts. So, for me, what I would do is I would play this on a swing trade basis at 2 dollars, excuse me, 220 dollars and 35 cents, knowing that I could always stop out at a pierce of basically 230 dollars. If it does close above that on a daily closing basis, then that would be your stop out level for a stock like B E QBTS had a huge move to the downside. It actually was going negative there for a while. I mentioned to $21.22 was my level. Look at this sell-off. This didn't happen until today. It was down 5% and all of a sudden we're getting this nice bid in the markets to the upside. What I'm doing is identifying additional resistance levels that is in that are in the charts. And so here's a prior gap as well as a lot of a pivot low here and price consolidation. So for me, if price action on QBTS did get to $23.70 by 3:00 p.m., this is something I'd look to take for a a day trade or swing short. Tesla, I was mentioning a couple different levels. So aggressive level right here at $390. Secondary aggressive level was $392. Third aggressive level is a prior gap in the charts at 397. I was looking for a $400 appears on the chart of Tesla yesterday. And but look at what happened. If you were a little bit more aggressive and you were able to get out, you could have taken over a $10 move to the downside. Now that we're pushing back up, I have to remove some of these trend lines. My first shortable level today would be this high pivot point. Again, this is an aggressive level at 398. And then I would actually for me, I would look at 405. 405 would be my level knowing I've got additional gap in the charts sitting right here at 40708. And this would be a position that I would take here at 40518, average in at 40780, and then if it does close above that on a 15-minute closing basis, I would look to exit the position and then possibly re-enter it because it's a gap in the charts at $417.52. I wouldn't be willing to chase this all the way up just because it it's not really a ton of resistance in this area on a momentum stock like Tesla. IONQ, nice sell-off today as well. Did get up to 4344. That was the level I was looking at yesterday. Didn't get up there until today. Big sell-off and now we're actually going above that. If those of you who are a little bit more aggressive, got to identify additional resistance levels same with IONQ or QBTS. Right here at $45.86 is that first level of resistance that I'd be looking to short it. Bitcoin had this nice push to the downside. Was mentioning I was short-term bullish on this and I needed a close above $75,000. And that's what almost happened. It got really close. Didn't confirm above this high pivot point right here. So uh it is starting to put in some bullish consolidation right at the upper end of the screen bar candle. So I'm still bullish on this. On the downside, if we recapture this down-sloping trend line to the to the lower end, my stop out for my bullishness would be 70.632. If we close below this low pivot, we're going to head uh uh much lower. Now on the upside, now that we've gotten out and broken out of this down-sloping trend line, I'm looking at an upside move to about 80,556. This is this low pivot in the area and that's the first level of resistance that's going to happen on the chart of Bitcoin. Here is where I'm looking at for a potential um max upside target at least temporarily. It It really depends on what happens to the chart of Bitcoin. If it consolidates sideways inside of this basically this resistance level, then you could start making a a case that it's going to push higher. But at as of right now, 6 80,556 is that first level and then consolidate right there below it and then you can go up to 85,346 bucks. Microsoft has a big push to the upside. Here's a couple different levels I was mentioning. First pivot top here, secondary hit. And I was looking to possibly enter a short trade and Garret Salaway was going to enter a short trade in his swing day trading room as well. Right about 425 bucks. Not only is this this high pivot point in the charts, but it's also this nice down-sloping trend line. That it would be the third hit of this trend line. And so it does favor a pullback in the charts. What I'm looking for is not a huge reversal. You could come back down and fill this gap sitting at $393.65, but that would be for me uh the max downside after a retrace if we want to maintain a bullish sentiment. We start breaking below this 80 $381.87 level and then all of a sudden you've got a continued breakdown on the chart of Microsoft. But right now, what I do anticipate is price to pull back, retest this down-sloping trend line, possibly retest it again, and then we've got a nice move to the upside. So I'm am switching more to a bullish sentiment on the chart of Microsoft. STX is into this up-sloping trend line. What I like is that STX hit this up-sloping trend line, closed above it, kind of like what Bloom Energy did. Got above it and then we got a rejection. This is not a huge rejection yet. It's still at $524.17. This would be my first entry point for a short trade. Not today. If I'm going to take this as a swing trade, this is my entry price. For a day trade, I'd be looking for $533.67. That's going to be your resistance level today. I will say though, on a daily basis, this is not being super volatile. So this is one that I'd stay away from. Once it starts taking out that double top, then you have a lot of bullish sentiment in it and it can drive it all the way up to about 550 bucks. So this is one of the reasons that if you're aggressive, you take that gap in the charts that's still valid. Um and then just make sure you have a pretty tight a pretty tight stop out. And again, I still like this for a swing trade. In a day trade, I'd be going a lot heavier in the trade, which is why I would only take it at that particular gap in the charts and then I'd have a tight stop out. All right. NBIS is into a lot of resistance as well. Here's this up-sloping trend line. Closed above it. Closed it above again. And now we're getting a little bit of a rejection. If price can consolidate a little bit more, NBIS may want to start heading up a little bit higher, maybe hitting the 180 to $200 level. For me, that would be the max upside. But every once in a while you have these resistance levels that get consolidated on top of and then all of a sudden we get these big breakouts to the upside. That wouldn't be a huge move. It'd be about a 20% 22% move to the upside. Not a substantial move. It's not moving up 115 to 200%, but that could be the next level of resistance that NBIS is telling us that it wants to get to now that it's recapturing the upper side of this up-sloping trend line. So keep this on your radar. Even though this is a starter position for a swing short, doesn't guarantee that this is the entry or the exact top. Um it is getting overextended and I do think that it favors a pullback. It's overextended on the relative strength index, starting to curl over a bit. But you know, that could just mean that there's momentum in this stock and could head up a little bit higher. So I would look to dollar cost average into this if you were are short on NBIS. All right. Last but not least, let's just jump into AMD. So here is my shortable level on AMD. I actually love this entry price at $275. So if it is at that level by the time you're watching this, look at this extended move. 193 bucks all the way up 42% in 2 weeks all the way up to 275 bucks. So I love this for a potential retrace all the way back down to the scene of the crime re breakout about $267.75. That's where I'd be looking to take profit. Now, it does have this up-sloping trend line. It could head all the way up to about 285 bucks. So I would look to dollar cost average into this every two and a half to three bucks higher and then look for the significant pullback. Again, I think it's going back down to $267.65 or 75 cents in the charts. So thank you so much for watching. Again, this is a little bit longer of a video. I can't bring quite the energy uh with my voice like this. So I have to maintain a slow, calm demeanor or else my voice gets all over the place. Um so thanks for bearing with me. I really appreciate you guys and thanks for all the beautiful comments. You guys really are awesome. And we'll see you guys next time in the charts. Oh, if you guys are getting something out of this, please make sure you're liking, following, subscribing, sharing with those friends that way they can get the same market information you're getting. We'll see you guys next time in the charts. You guys have a great rest of your day. Take care. Yeah.