My Favorite Trade Setup Of The Week

For today’s Daily Smart Report, we are revisiting a stock that, if you read these articles, we highlighted not too long ago. We want to revisit this stock because of the setup it is giving us during this recent market rally.

Intel (INTC) has created one of my students and I’s favorite setups. As you can see in the video, INTC has been largely stuck in a well-defined range, bouncing back and fourth between major support and resistance levels. Now, the stock has broken out of this range to the upside. This sets the stage for a break and retest to go higher.

You’ll see that after the stock broke out of the resistance level, it lost a bit of steam and now looks like it could be headed back down to that level. The idea is that the resistance level, once broken, will now act as support for the price.

This is often a high probability setup, which also gives the trader a clear point of entry. What you would do in a trade like this is wait until the level gets back down to support, or near it, and look for a reversal higher.

Not only do you have a plan for this trade laid out for you, but you can also easily determine your risk. Should the price break below support, you would simply exit the trade. If you attribute your stop to a dollar amount or percentage, you would simply exit when your risk tolerance is triggered.

As you trade more and more, you’ll find certain setups over and over again, giving you practice on which setups you feel comfortable trading. Learn more when you watch the video below and be sure to consider joining my students and I every week as we go live with our trading!

When you join The Profit Machine, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. The best part, you’ll receive all my trades every step of the learning process, so not only will you get a world-class education, but you’ll also earn while you learn.