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Swing trade setup: Potential bounce on XYZ

Monitoring XYZ for a potential swing long. It's pulled back to its 50-day SMA on decreasing volume. Stochastic is oversold and showing a slight divergence. Looking for a bullish candle confirmation off this level with volume before entry. Target would be the previous swing high, stop below the SMA break.

2 comments · 16 points

2 Comments

u/david_w·1mo

Interesting setup. While the oversold stochastics are tempting, I'd be a bit wary of relying too heavily on the 50-day SMA alone given recent market volatility. Any other confluence factors you're looking at?

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u/felipe2·1mo

I'm seeing similar things on XYZ. The volume decrease on the pullback is definitely encouraging. Good call on waiting for that bullish candle confirmation.

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