This stock has refused to break down…

11/9/2022

“The midterms will help the market!”

I’m sure you’ve heard that quite a bit over the last month… But the truth is that it depends on the results.

Split Congress? Historically, yes. Otherwise, not so much…

But to prepare for a possible lift as the indices tread water, I’ve been bottom-fishing for stocks to buy… if we get one.

This can be risky, so don’t be like Bill Dance.

Watch your line!

(Source: tenor.com)

The way I’ve been going about it is by scanning weekly charts before even thinking about checking the daily and lower time frames…

Remember, start with the big picture and then zoom in.

Now, this is a bit different than faster trades like the ones we take on a daily basis in TRADECOMMAND… But if you’re thinking long, here’s one that’s hit my scans over the last week…

This is Galecto, Inc. (GLTO):

Above is the daily chart… I’ll spare you the weekly since there’s little to see aside from sideways action and moving averages.

Boring.

At least on the daily, we can check out the swingable pivots within the range… and the signals to watch for.

I want to be clear on something: I am not calling a market bottom.

I’m simply looking for potential medium to longer term positions that are trading with strength relative to the broader market and, when scanning on a weekly time frame, I avoid the complexities.

Volume and Moving Averages.

From there, I move on to the daily and start looking for levels of Support and Resistance.

The basics, sure. But the basics work…

GLTO has well-established support close to the ~$1.60 area and has for months… Just look at the long wicks on the candles after bad earnings were reported yesterday.

For further confirmation, take a glance at the Fibonacci Retracement drawn in and you’ll see a ton of respect for the 78.6% level at $1.55. I circled this in green.

Resistance is crystal clear at ~$2.50.

On to the indicators…

The Alpha Waves tool from TRADECOMMAND sent out a “Short” signal yesterday and this is an indicator that let you know the optimal times to enter or exit a trade.

With this signal, I’m on the watch for where the share price rests before turning around to the upside for a “Long” opportunity.

What’s clear here is that the stock is at an important sticking point — notice that the moving averages are all trending downward and converging…

Ideally, they intertwine for a period of time and then finish with an explosion to the upside, stacking on top of one another.

Targets for this trade are circled in black.

However, if the hints that I’ve received are indicative of where the stock is headed, those may pale in comparison…

Keep moving,

(Disclosure: I hold no position in GLTO.)

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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