Momentum Stocks Suggest a “Face Ripper” is Coming Soon
Stocks ripped higher early yesterday. However, they ended the session near their lows at support levels (green line in the chart below).
The overnight futures session is signaling another rally this morning, but until we take out overhead resistance (red line in the chart below) we’re stuck in no man’s land.
One thing is certain, a BIG move is coming.
Momentum Leaders are Giving a Us a Clue
Shopify (SHOP), one of the biggest momentum stocks in the market, has taken out one level of resistance already (the lower red line in the chart below). It will be testing — and possibly breaking — a second level this morning (the upper red line in the chart below).
This suggests the next move will be higher.
Tesla (TSLA), another Wall Street momentum darling, will likely break out to the upside of its triangle formation (the blue lines in the chart below).
This too suggests the next move will be higher.
Keep an eye out. We might be about to see a real “face ripper” higher soon.
Editor, Money & Crisis