Insmed (INSM) is a global biopharmaceutical company, which engages in the development and commercialization of therapies for patients with rare diseases. This stock is among those in play as recently the company recently announced their trial of bronchiectasis treatment achieved some key endpoints, sending the stock soaring recently.

Whether or not this hype in the research breakthrough will be short lived is still up in the air, however, this piece of news means that there should be more eyes on this stock, and ultimately, this setup.

Right now, we have a key level of support at 24 and resistance at 26. If either of these levels break in a major way, then we will look to follow the price action. At this point, given the news, there should be a little more room to the upside. But as is often the case with these biotech pops, keep an eye on a pullback as a large move has already taken place and the big players could be looking to take profits soon. Keep this trade high on your watchlist. Which ever direction the move comes, it should be a lucrative one.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

Normally, when biotech companies experience such a move, there is some pullback as investors and traders try to decide on the price of the stock. If the move was news driven, these gains could be short lived. However, we have our levels to watch, so whatever story price begins to tell us, that will be the lead for our trade.

As for our levels, we have a major support level around 32.5 where price has already tried to test several times and failed to go lower. That’s good news in the short term as this could still act as support and supply us with a bounce level to watch.

To the upside, we do have some resistance that it will take some significant volume to get through. the 37.5 mark is the one you want to keep your eyes on for an uptrend entry. If either of these levels were to break with price holding above or below the corresponding level, that is the side of the trade you want to be on.

This is the type of trade where patience comes in to play more than most other trades. A trade like this will have traders thinking they know what will happen next instead of letting price dictate the trade for them. Don’t get sucked in to chasing a breakout or breakdown. Be patient, see how price action is responding to levels, then from a cool and calm state of mind, make your trade with your risk management already worked out.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

Today’s level on Broadcom (AVGO) is both. As you can see by looking back on the chart for AVGO, you’ll see a zone from about 922-925 where price has been struggling to make past. This is our area of interest on this trade breakdown.

There’s two ways the can play out for us, but both of them require a great deal of patience from us. We must first wait for price to get at or near this zone. Then, we need to gauge price action and which move it favors. Is it favoring a strong push through this level, or is price failing to go higher attempt after attempt?

Currently, a reject seems a bit more likely than a strong push and close above 925. However, if the rest of the market decides to pick up, that could be all that’s needed to push price through this resistance level.

The flip side is also true. If the market begins to lose some steam, it could make the chance of there being a massive reject all the more likely. One thing is for certain, this is another trade setup worth keeping on your watchlist.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

To kick off this weeks of trading SPY and QQQ have both tried to put in a relief rally, however, stopped just short after filling gaps on many of the major indexes. The story is always the same in these types of situations. If the broader market can get a substantial push off these levels, then so should MA.

However, we always have to take into account the broader trend at play. Currently, much of market sentiment is bearish and I can’t say I disagree with that. The end of last week has left a rather bad taste in many of the mouths of the bulls out there, but we are at some key macro levels on the major indexes.

There is a major point of contention MA has with those who look at this chart as bullish. With the break of support from Thursday, that might just be the confirmation the bears needs in order to take this thing much lower. Why?

If you look at the chart in the video breakdown, you’ll find a rather bearish chart pattern I identify… Will this mean a break down is imminent for MA? One trade setup to look out for would be a retest of support, now resistance if MA can’t break and hold above, is the retest and breakdown of support.

Take into account the bearish chart pattern we are seeing and you won’t want to take your eyes off this stock this week. Be sure to have alerts or reminders set in order to be locked in when this trade approaches the make or break point at any time during this week.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

And the timing couldn’t be better after the stock showed it is  bit more resilient to a market decline than most other stock in the market right now, especially those in the technology sector. The setup we are looking at, as you may have guessed by now, is a straight forward one.

After a bit of a rejection of the 52-week high just under 200, the stock is now looking to find some solid ground. What could very well end up happening from here is we find our way back down to a previous level of support around 180 for yet another bounce.

However, if that level fails to hold us up again, we could find our way back down to 170 or lower given the overall market is trending lower. For now, the setups seem straight forward, but the real question becomes, will the rest of the market hold up or not?

With the spate of declines we have already seen across the sector and market overall, one might reasonably think more declines are to come. In which case, I would be keeping my eye on how this stock in particular, which has done a decent job so far of holding up during these declines, reacts. If the market pushes higher, this stock should get a bump also as it has already been on an uptrend move for the past several months.

If you’re looking for a bullish move from a stock, this could be the one to watch. However, that does not rule out the possibility for this stock to do an about face and head lower. The key level to watch here is that 180 mark for a bounce or a breakdown. Be sure to keep this stock on watch as we close out another eventful week trading.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

Finding support and resistance levels is what we do here in these videos each and everyday, so at the very least, if you’re not using these videos to make a trade, you can use these videos to practice how to find these key levels.

First, as we look at the chart for KKR (KKR), the stock on watch today, you’ll notice one of many things. The first thing you need to consider is the timeframe you’re looking for these levels on. For myself and for many successful traders, we look at the higher timeframes. You can go to the weekly and monthly to get a better sense of where we are in an overall trend, however, when looking for key levels to trade, I typically zoom in just a bit to the daily.

Remember, if you can barely see the levels, chances are the market can’t either and that level won’t be effective for your trade. So, when we look for these levels, we are usually using the daily time frame.

From there, we look for price points where price has reacted to many times in the past. For KKR, that price you can see pretty easily at around 58, that is where we draw a line in order to help us map out the stock’s price chart. Then, you have to consider where price is in relation to that price or your line in order to see if it is now support or resistance.

If price is holding above this line, it is considered support. If it is trading below it you know it is now resistance. Take into account our system, calls at support and puts at resistance and you have just added one more critical piece to the puzzle.

That’s because when price is falling toward a key level, the highest probability trade is a bounce, if it fails, we quickly exit the trade. The opposite is true when a resistance level approaches.

With respect to the current Daily Smart Report trade we are looking at below, 58 is currently acting as support… until its not. That means, once it fails, it then becomes a resistance level that we can pay close attention to in order to see if price will then reject off it after an attempt to break the level to the upside. These levels give us important spots to pay extra attention to so we have the market mapped out.

Seeing as how KKR’s price closed right at this level, a break of this level could imply lower prices if it cannot lose back above this level with some meaningful buying volume. Those looking for the market to head lower should also keep this trade on their watchlist as this week of trading draws to a close.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

After briefly making a new 52-week high of just over 490, URI came crashing back down toward the 400 level, but not before starting to form our inverse head and shoulders pattern along the way. Currently, the stock is making its way back 455, a key level if the stock can get a close above, from the low of right around 415.

This inverse head and shoulders is bullish reversal pattern that signals the stock is definitely on the move after pivoting off 415 or so and bouncing upward to current prices. If we can get that close above 455, then odds are the we get a run higher.

However, the overall market will have a say in all this. If the broader market decides to hold steady or take off higher, the probability of this stock making another move higher are greatly increased. If the market begins to collapse, then this stock will likely follow suit.

This pattern, or any for that matter, are not guarantees of the move they imply, but there are clues traders can use to help them plan their next trade. When these patterns are so easily spotted, it’s highly likely that we aren’t the only ones that can see this pattern form, which bodes well for us and the implied move we are expecting to see.

Now, there are such things as false breakouts and breakdowns that we want to be careful of. One rule of thumb I have begun to teach my students is if you’re certain of a move coming, just wait until the next candle closes. Many times have I entered a trade based on my certainty of the coming move only to be stopped out by the very next candle.

The key lesson to learn here is patience, or as I like to call it PAYtience. Fortunes have been made on little else than a trade being able to control his or her emotions and impulses in waiting for the opportune time to make their move. Make sure you practice controlling yourself. Conquer yourself, conquer the market.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

For IMGN, the chart has given us another opportunity to play a bounce, and if that bounce doesn’t come, we have the downside we can also play, should the level we are watching fail. The key level to have marked on your charts is 14. As you can see by looking at the daily timeframe, there has been a solid level of support developing here.

After a large gap up a few weeks back, the stock had reached a 52-week high of just over 20. Should the stock gives us a bounce at this level, we could be looking at prices reaching back toward 16 on its first stop. From there, there is not much resistance until we see 20 again.

Now, if the stock were to reject anywhere or simply breakdown on this 14 level, there isn’t much support that would buoy the stock from falling further, perhaps even as far as prices not seen since before the gap up. One thing is for sure, this 14 mark is a make or break for the stock and any traders that have a bullish bias.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

In perhaps one of our cleanest setups in recent memory, MLTX has formed a very well consolidated range between two key levels. For support, we have a line drawn in the sand around 50 and as for resistance, we are looking at the stock rising above its recent high of 63.4.

As always, these levels provide us the roadmap to our trade and what we can reasonably expect from how the stock should perform given where price is currently sitting in relation to these levels. One the one hand, MLTX got a nice bounce last week from that 50 level which could very well mean we are back on our way toward at least 60 in the near term.

One thing to always keep in mind when we are talking about a support or resistance level is where a candle closes in relation to these levels. For example, for some indication that the stock would be headed higher after a break of 63.4, we would ideally want a candle close above that level in order to signal enough buyers have stepped in to make this move more likely.

None of this is to be considered without knowing what the rest of the market is doing, however. As of late, the market has looked anything but stable. We’ve gotten some bullish moves, but none with a tremendous amount of follow through giving us any indication that the bull run is back.

If we get a market that decides to push higher, then MLTX could very well be off to the races. If not, then just the opposite could be in the future for MLTX. Be sure to keep a close eye on these levels, as well as on what the rest of the market is doing as well.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

For us, that trade comes from the setup on Northrop Grumman (NOC). The level we have our eyes on is 480 which has already been broken in the premarket, so this trade may be underway already, which could make time of the essence here. Since our long entry was on a break through 480, we should now wait to see if price holds above this level.

If there were to be a pullback we were waiting for it would ideally come at 460, which would also gives us a short play as well if this level gave way.

As long as the stock remains bullish, so does our trade on NOC… until it’s not, of course. When trading, you need to be sure you are using levels such as these not only for your entries, but for your exits and stops, as well.

The best traders in the world do not mindlessly enter and exit trades. They use levels to their advantage and allow them to guide their trading. Trading on bias or expectations is how many a trader has blown entire accounts faster than they can sign up for a trading account.

To be among the 10% of traders that succeed you need to think like the experts on Wall Street. Trade with these individuals rather than against them for long-term success in this or any market.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

Take a good look at the video below and pay special attention to us creating our trading plan based on the one level we have marked on the stock. In the case of International Gaming Tech (IGT), we have one key level marked and from there, we then can go into our trading plan, which can often be a two sided plan as you will see.

For IGT, the main level we are watching is 30 as a support level. However, just because this is a support level does not mean we blindly take calls on a bounce off this level, quite the contrary. This levels indicates where we need to zero in our focus and pay close attention to what price action is telling us.

A common mistake I see traders make is when they create their plan, they become robotic about it, as in price comes to support and they automatically take calls, even if price action tells them that they should rethink that move. Your plan is more like guardrails than it is instructions on what must be done.

Levels give you a point on the chart where you need to zero in your focus so you can see how things like price action or volume are playing out to dictate whether or not you should enter a given trade. This is why you often hear me in my videos say things like, “if prices fails here” or “if price rejects here.”

Just because we find a meaningful level, doesn’t mean the market is going to react the way we think it will. So, in the case of this trade, we know we need to pay attention to when price gets around 30, but we must also pay attention to how price reacts to this level in order to give us the green light to enter calls, puts, or avoid the trade all together.

Interested in learning more about this process of planning and executing on a options trade? Be sure to watch the video below and if you want an even deeper dive into my trading strategy, don’t forget to sign up for my trading community with the link at the bottom of this article.

Learn even more about my trading strategy when you join The Profit Machine. There, I’ll teach you all about my favorite stocks, setups, strategies, and plenty more to make sure you can take your own trading to the next level. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

There are no guarantees in trading, however, looking for trades that have multiple confluences confirming the trade you think you see is always how we gauge if a trade is high probability or not. This just so happens to be one of those trades.

If you take a look at the video below, you’ll see a nice trend upwards and the stock of the day, Hilton (HLT), respecting that trendline and making higher highs from each successive bounce off support. Fast forward to now and we have a different support level being tested.

Over the past several weeks, the stock has seemingly started to trade a bit more sideways than the majority of the year that saw a steady increase in price. However, as you can see from the most recent sessions, the stock has bounced off this more recent level of support.

The idea here is that this bounce, coupled with the bounce in the overall market, could at least imply a test of that resistance level near 156. Whether or not the stock will break through that is not quite the trade, although it would be nice to see a breakout through this resistance.

The trade here would likely be a swing trade in which you go long for the move toward resistance, ideally on a pullback where we don’t break that support level. Enter the trade on the bounce and ride it up to that resistance level, trimming along the way, but staying in the trade to find out whether or not we break through 156.

Be sure to keep this trade on close watch as it is a higher probability setup when compared to the other possible trades presenting themselves at the moment. These setups don’t come around every session, be sure you’re ready to execute…

Learn to trade like this for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.

Read More and Watch the Video at Wealthpop

The stock we are looking at is Flex (FLEX). Before we look at the trade, I want to draw your attention to some of the level highlighted in the video below. From there, we can being to look at the trade at hand and begin to understand the rationale behind today’s trade idea.

Given the way the stock has acted in terms of support and resistance over the past several weeks, bounces may be a bit more favored here seeing as how this stock’s trend is still upward. However, the two levels to keep an eye on are 27 as resistance and 25 as support. With a break of either of these levels, some follow through in that direction should be expected.

Make sure to set some alerts on either price so you know exactly when price breaks either one and you can act given any further confirmations.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

Read More and Watch the Video at Wealthpop

This wouldn’t totally negate the trade below of a bounce at a possible support level, it just means we would need to be extra careful as the market could continue its pre-market pullback very easily as investors become spooked about the performance of the market during this time.

Rejects are probably a bit more high probability in a market like this, but we can still see some bounces off key levels of support. If this is the case with the 600 level on LRCX, traders should expect a quicker, shorter-lived move for support bounces.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

Read More and Watch the Video at Wealthpop

WBA has drawn a clear line in the sand at around 22.5, which also could be a level that may get taken out if the stock gets some more bullish momentum. The momentum needed to get the stock to break this resistance level would likely be able to take the stock all the way back up toward 25 on a good push.

However, being that this is resistance, you would want to jump on this one with both feet until you had confirmation of a break higher. This is to protect as much of your capital as possible and make sure you’re managing your risk properly.

Should the resistance level be too strong, price would likely reject off this level and be sent lower as it fails to go higher. This doesn’t totally invalidate one trade or another, traders will just want to keep a close eye on price action in order to see what price will do.

If price stalls out at this level and struggles to make higher highs, you may want to be cautious. If we get an overshoot of this level, traders may want to look to enter the bullish side of the trade if there is a pull back to this resistance now turned support level. These are the likely scenarios for what will happen to WBA at this level, so keep it on watch as we wrap up the week.

If you like The Profit Machine (TPM), then you will really like my Wednesday Profit Room trading service. Same high-quality options action, as well as more world-class trading education. As I say, the more screen time and education you expose yourself to, the better. Give it a try for one month here and if you don’t find even more value, cancel anytime. Your success as a trader is on the other side of hard work and education, will you be willing to put in the work with me as your guide? Give it a try today!

Good Luck With Your Trading!

Christian Tharp, CMT

Read More and Watch the Video at Wealthpop