I like this trade, but I need to stay on guard. I like that big shakeout after earnings that closed back above the PoLR on big volume. I like how 2 days later it made a KO recovery. Big volume on a down day but closed back over the PoLR. I like that today it recovered most of the pullback from the KO recovery.
What I’m worried about is today’s move higher was on little volume. I’m also concerned by the RS. Even though this is strong within the IT sector, the sector just underperforms the SPX by 7.21%. Those 2 things keep me on guard.
Nevertheless, as of now, the price is still flirting with the PoLR, put has managed to close above it. I’d like to see some big break away volume in the near future.