2 Stock Setups Every Trader Should Take Note Of

In this issue, we are going to talk about two stocks who have very similar setups. For us, the most important thing to watch is price and finding those price levels that are most significant when it comes to the stock in question. In addition to that indicator, we can look at something like the relative strength indicator, or RSI. This indicator, combined with price, shows us one of my favorite setups, a positive or negative momentum divergence.

In both of our examples today, Enphase Energy (ENPH) and Northrop Grumman (NOC), the stocks are showing positive momentum divergences, which can be very telling signs for what the next move could be.

With ENPH breaking back above key mark at 220 and NOC coming off a bounce on a strong support level, it seems these stocks are showing a fair bit of strength and are firmly on our watchlist. If you want to hear the entire explanation on these setups, be sure to watch the video below!

Learn tons more about our favorite stocks and setups when you join The Profit Machine. Every week, you will get exclusive access to all things option trading, from the stocks I trade the most to the setups I look for when trading them. The best part, we are putting on 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.

Get a jump start on your options education and put yourself in position to win in 2023. Sign up today! Until then…

Good Luck!

Christian Tharp, CMT

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