Yesterday’s trade idea, CME, broke out.
It is now set up to be a buy over yesterday’s high with a stop under today’s low.
However, the market is still in a bearish mode, so any new trades should be watched very closely and have tight stops.
Today’s trade idea is not breaking to new highs, it’s pulled back to a great support level.
As you can see in the chart below the recent market selloff has not had a big impact on Akamai Tech. (AKAM).
You can also see that it has pulled back to a good support level from which it broke out from with good earnings.
Monday’s range now defines your whole trade.
The buy trigger is a break over $87, and the stop should be under $83.
If you’d like to have a tighter stop, use $85.43.
The market is in a mode that will very easily stop you out of tight stops, however, if this proves to be a market low, then one or two good trades can turn into big winners.
Only trade if you’re comfortable getting stopped out and playing in volatile markets.
Rick Nartarian, Chief Investment Officer
Darwin Wealth Creation