Investment Information 6/10

Studied a 30 minute video on possible trends. Let's use this to guide our decision for the magnificent 7 and PLTR.

Here are the key takeaways:

1. Price Discovery

2. Price Action (Technical Analysis)

• (Lower) Range Breakout / Second Chance: the support becomes the resistance, and enter when the first candle goes downward. Stop loss is top of the consolidation peak and take profit is bottom 2x of the range. Conservative method is stop loss at the top of the retest level. Does that work similarly for the Upper Range Breakout?
• Extensions: If price dips quickly (eg. 20% of the time it spent in consolidation phase), find horizontal line double bottom pattern. Buy in at top of the trend, 1:1 risk:reward ratio, because likely it is to bounce towards consolidation. Does it always work?
• Mid Range Trade: it’s too uncertain within the mid-range.
• Failed Range Breakout: likely to happen when the price surges from minimum of consolidation to breakout the resistance levels, or vice versa, very quickly (under 4 candles). Enter at resistance level, stop loss above the peak, and take profit at minimum of consolidation range. 2:1 risk:reward ratio.
• VWAP / ABC

3. Trade

Decisions / Observations on 5 February 11am SGT

Observe

1. MSFT is currently at recent support level. If

• it breaks under and retest and breaks lower, it's a good time to buy Puts - but I don't want to dabble in options for now
• it bounces up from support, buy in to it's growth.

1. VST is at top of range, need to see if it goes up or down.
2. S&P at top of range.
3. GOOGL has sharp pullback of about 5% to bottom of range due to 0.21% less revenue than expected in the earnings report.

No actions needed

1. AMZN seems to be on an increasing trendline but hasn't hit the base. Let's wait for it to hit the base
2. META is on a bull run but it's unclear how long it will sustain.
3. AAPL is at midrange.

Buy

1. NVDA seems like ripe for trend reversal to growth!
2. TSLA same as above.