The Shakedown 6/23/19

Click Above for Chart Talk Episode 3 

New Highs - Can It Last?

The Stock Market ticked new all time highs this week on the Fed signaling a rate cut in July. The next major headline that will be talked about ad-nauseum this week is the G20 Summit (next Friday-Saturday) where Trump and Xi will meet next and we'll get a fresh set of headlines from the Trade War story. The other new headlines will all be surrounding what will happen with Iran, with tensions increasing this week. 
From a technical standpoint, it's very unlikely we just blow through this all time high resistance area and make a parabolic run after already going on a huge run into the level. We saw some late weakness Friday that could signal the need for consolidation early on this week. That being said there are some good setups out there. You have to continue to be somewhat picky, but the best setups have persisted to break out in this market. 


After staring at this ELAN setup for the past 4 months, it looks the best it ever has below this $34 level. There was a nice little shakeout last week, which just gave it better consolidation within the base. We got an inside day Friday that we will likely have to play off of Monday if the $34 entry comes to fruition. Want to see big time volume through that $34 because we know how strong the sellers are in that area. If this time is THE time, we should know by volume levels. 

Trigger: $34

Stop: $32.89

Target: $39-42+

Hope to see you in the chat Monday!
Weekly Watchlist coming in the following email.

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