By: Christian Tharp, CMT
After an eventful week last week, we are shaping up for another week full of surprises and trading opportunities. To start the week, we have another pretty straight forward setup to take advantage of that should give our traders some decent price action to work with, depending on what the rest of the market decides to give us.
As every sector finished the week in the red last week, the market sentiment seems to remain overwhelmingly bearish. However, we are at some key support levels across our major indexes that could give us some bounces as we kick this week off.
Despite all the noise from the FOMC meeting last week, upcoming economic data, and a slate of Fed speakers set to make remarks regarding the economy and interest rates, our trade today should be able to give us some A+ setups.
For the trade of the day, we have a lesser known stock making its way across our screens. Today, Bunge (BG) is the stock in focus as it establishes a pretty well-defined channel between 110 as support and 116 as resistance. Obviously, a break of either one of these levels could signal more follow through in that direction.
However, for those of us that are comfortable with scalp trades, you could look for calls at support and puts at resistance levels. These would be quick trades with the average…
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