It’s the start of a new month and as we inch closer to January, I really can’t say I’m bearish on the market.
When there are pullbacks, typically, I want to be a buyer of the dip. Heck, just yesterday, I showed you two alternatives for buying the dip.
With stocks gapping higher, this trend is still intact and there are stocks at key levels that I want to keep my eye on right now.
You see, they’re actually at areas of value, and based on the price action, these stocks can catch a pop.
So let me show you which stocks I’ve got my eye on and which key levels to watch.
Yesterday, I mentioned how Alibaba Group (BABA) was on my radar.
Again, it’s right at a key exponential moving average (EMA), the 144-day. What this signals to me is the stock can find support around this area. However, we’ve seen the stock trade below it and quickly rebound.
If that area holds, I wouldn’t be surprised if BABA starts to run higher and test the $280 area (an inflection point for the stock).
Next up, there’s Apple Inc. (AAPL).
The stock held above a key support level around $110 and started to catch a bid. Now, it’s at a key resistance level just under $120. I think it’s important to monitor the stock right now because it can be a momentum play if it breaks out.
Last up, there’s Wayfair Inc. (W).
This stock is right around key exponential moving averages (EMAs). The ones to focus on are the 8- and 21-day EMA, which is right around that $250 – $255 range. Based on the price action, these levels can hold at support and from a risk-reward standpoint, this play looks attractive.
Right now, I believe it’s important to follow the price action because that’s how I’ve been uncovering my plays.
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