Trading is hard enough. We don’t need to make it any harder on ourselves with our method of trading, which is exactly why we keep our strategy so simple. No need to overcomplicate things with anything besides looking for levels ad zones the stock’s price reacts to. As I always say, price is the ultimate indicator.

Which brings us to our stock of the day: Boeing (BA). The stock has formed a pretty well-defined rectangle channel here with 193 acting as support and 220 as resistance. However, given yesterday’s bullishness in the market, the stock now looks primed to take off and break through that upper level of support soon.

If BA could take out this upper level of support with some volume, I would like to see a retest of this level, now expected to act as support. That would give traders that are going long with calls the highest probability entry. Stocks that break through resistance like that have a tendency to come back down to that level to test before moving higher.

Not only does this give you a higher probability entry, but it also helps you determine if the move is genuine or not. If that 220 level was not able to hold, then you would expect to see lower prices, probably back down to the bottom of the channel formation. Keep this one on watch today before it takes off.

Learn to find these levels 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.