Despite the market ripping higher over the last week, we have managed to find one stock that lost its invitation in the mail. The chart for Hims & Hers Health (HIMS) had formed two major trend lines and the one it decide to break was that of the lower bound trendline. This break of the bottom trendline doesn’t necessarily lower prices are guaranteed, but what it does suggest is that the trend upward may have been broken, whether that is going to play out over a linger period or shorter is anyone’s guess.
However, for now, this suggests lower prices could follow especially as the market has run so hot, also suggesting a pullback could be in the cards. If the overall market cools off, even for just a day, this obscure stock could follow suit with an order of magnitude higher than that of a broader pullback.
This may not be a stock you are very used to trading, and indeed it is a new one for us as well, but this just goes to show how many opportunities there are in the market at any one time. A trap I often see my students falling into is if they don’t see A+ setups forming in the stocks the are most used to trading, it assumed there aren’t any in the market at all. This is simply not the case.
To be a successful trader, you need to be able to look elsewhere for setups that fit your trade criteria, if you are able to do this effectively, you will never know want in the market. Now, you may have stocks you are more comfortable with trading and that is perfectly understandable. The point here is simple, you are better served honing your skill of identifying A+ setups than you are at just studying one or a handful of stocks.
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