Is price action really king?From candlestick patterns to resistance levels, today’s video breaks down how to read charts and make better informed trades.Watch the full video:https://t.co/mOl0WKfWwm https://t.co/kuaD8oalWz ...

Could Coterra Energy Inc. CTRA be on the brink of a surprising turnaround? As the stock approaches a key support level, traders are watching closely for signs that history might repeat itself in favor of a bullish reversal.Coterra Energy is quiet on Tuesday. But it may be about to reverse its recent trend and head higher, which is why it’s our Stock of the Day. The chart illustrates how traders can gain insight into where an uptrend or a downtrend may end.‘Sell at former tops' is a common expression on Wall ...

Summary of Key Points Core Viewpoint - Macy's Inc (NYSE:M) stock is facing significant resistance around the $12.60 level, which has limited gains for the past couple of months, and the 100-day moving average is also exerting overhead pressure, indicating potential downturns in the future [1] Group 1: Stock Performance - The stock is currently trading at $12.59, reflecting a 1.1% increase [1] - Since reaching a four-year low of $9.76 on April 8, Macy's stock has struggled to recover and is down approximately 26% year-to-date [3] Group 2: Technical Indicators - The stock is within 0.75 of the 100-day moving average's 20-day average true range (ATR), having spent over 80% of the last 10 days and two months above this level [2] - Historical data shows that after similar technical signals in the past three years, Macy's stock was lower one month later 80% of the time, averaging a 7.8% loss, which would place the shares at approximately $11.61 if this trend continues [2] Group 3: Options Market Sentiment - There is a potential unwinding of optimism among options traders, as indicated by a high 10-day call/put volume ratio of 7.47, which ranks higher than 86% of readings from the past year [3]

Core Viewpoint - The stock of The Estée Lauder Companies Inc. is experiencing consolidation after a significant gain, encountering resistance at approximately $74.75, which may indicate a potential for further movement in the stock price [1][2]. Price Movement and Resistance - The stock gained over 10% on Monday before hitting resistance at $74.75, a level previously established in late February [1][3]. - The resistance at this price level is attributed to buyer's remorse from previous investors who sold their shares when the price dropped [5][7]. Market Dynamics - The presence of remorseful buyers at the resistance level indicates that if these sellers can be overpowered by new buyers, the stock may experience a rapid increase in price [6]. - The gap down from around $80.80 to $74.75 in January created a situation where there was no trading in between these prices, leading to fewer sellers if the stock returns to these levels [7][8]. Implications for Future Trading - If the stock can surpass the resistance level, it may lead to a scenario where buyers compete against each other, potentially driving the price higher [8].

Trading Strategies - Stock traders use price charts to identify support and resistance levels [1] - These levels help determine optimal buying and selling times [1]

Core Insights - The article discusses an active investing strategy focused on identifying breakout stocks within a specific price range, emphasizing the importance of support and resistance levels in making investment decisions [1][2][3]. Group 1: Breakout Stocks - Barclays PLC (BCS), NatWest Group plc (NWG), and Aris Mining Corporation (ARMN) are highlighted as today's breakout stocks [1]. - BCS anticipates an earnings growth rate of 21.2% for the current year [7]. - NWG expects an earnings growth rate of 17.3% this year [9]. - ARMN projects an impressive earnings growth rate of 226.5% for the current year [10]. Group 2: Screening Criteria - The screening criteria for selecting breakout stocks include a percentage price change over four weeks between 10% and 20%, current price close to 52-week highs, and a Zacks Rank of 1 [6]. - Additional criteria include a beta for 60 months less than or equal to 2 and a current price less than or equal to $20 [7]. - These criteria narrow down the stock universe from over 6,853 to only nine potential candidates [7].

Group 1 - American Airlines Group Inc. AAL shares are experiencing a rally after reaching an important support level, making it the Stock of the Day [1] - The concept of "market memory" indicates that certain price levels, such as support and resistance, hold significant importance in stock trading [2][7] - The stock has previously found support at the $8.80 level during the COVID-19 pandemic and again in July 2024, suggesting a potential buying opportunity [7][9] Group 2 - When a stock trends lower, it indicates more supply than demand, leading to price declines as sellers lower prices to attract buyers [3][4] - Conversely, when a stock trends higher, it reflects more demand than supply, causing prices to rise as buyers compete for limited shares [6] - Resistance levels occur when there is enough supply to meet demand, often leading to the end of market rallies [6][7]