Welcome everyone to the Top Charts setup video for today, June 9th, 2021.
Starting off as usual with some recent wave setups, and then I'll go into a few bonus charts at the end. First up is PayPal (PYPL). I do have a slightly different count than Zac here, still can be near-term bullish. And both counts would basically rely on theMay low holding for that near-term bullish setup to remain valid.
So stop no lower than there depending on how tight you want it. But the way I'm viewing it is an ending diagonal 5 wave in progress off of the March low. This would be 1 and 2 in place.Looks kind of like this can be 5 up off of the May 10th low, May 11th low, excuse me, for wave A of 3. Could reach a little bit higher as an A wave but do allow for the possibility for near-term consolidation as this B wave next. And again, holding above the May low in either my count or Zac’s count to maintain that near-term bullish potential. And then heading up to the 123.6, 138.2 for wave C of 3.
So that could, for those who want to play it a little bit more conservatively, potentially give you a slightly better entry on that B wave consolidation. But it's not necessarily required. Price could be set up a little bit more immediately bullish in this wave C of 3.
Next up is Verizon (VZ). This has been discussed in previous mega caps videos. It’s got a wider flat, looks like a wider flat here for the wave 2, within our potential ending diagonal C wave to the upside off of the February low. You even could view it as an LD up for the wave 1 and pullback as wave 2 and view that C wave as a possible standard impulse, as opposed to the ending diagonal.
It's not too dissimilar, as far as the overall expectations, just the difference being how the sub waves would unfold within the diagonal as A, B, C, within the standard impulse as 5 waves. But in either case, with price turning up from that 61.8 retracement, it does offer along with a little nano 5 waves up here an opportunity to even use a tight stop if you want underneath that May low, an entry at around this level to try and play for the start to that wave 3.
So again, that would be a very tight stop if you wanted to give it a little bit more room just in case price does reach a little bit lower in this wave 2, the 78.6 will be the next support at 55 and then complete invalidation below the February low to the start of this C wave.
Moving on to INTC, you have another situation where price is turning up from a significant low. Bottomed in May, right in the middle of our target support region at the 50% retracement, as well as a 200 day moving average test. It looks so far like three waves up, but if price gets another level high here, then that could easily be viewed as micro 5 waves up. Even without it, risk-reward is still pretty good using the stop underneath that May low currently for the potential that price put in a B wave bottom and is trying to turn up in the start to wave C.
And Zac did propose on his chart the possibility of a 1-2 start to a leading diagonal. So would actually potentially give us more than a fifth wave on the next high here, the next move to the upside. So, another reason that even without a possible micro 5 up already in place still offers as good a risk versus reward with a stop underneath that May low.
Then I wanted to revisit some of our crypto-mining stocks and crypto-related stocks. Based on the price action that we saw over the past two days we got that move to the downside yesterday which took price to support that had been discussed and cited for the fourth wave of a possible leading diagonal off of the May low. And then strong rebounds today on RIOT, MARA and SI which in the case of RIOT has already brought price back up to a new high in the month, enough to now give us 5 waves up off of the May low for a leading diagonal.
Now there's room for higher in this fifth wave. And, for example Marathon didn't quite exceed the prior high and SI also below its prior high as well. So would be nice to see those charts achieve that same fifth wave as well. But with that potential 5 up and again aside from a little bit further upside in the fifth, if we now put in another local top, get a consolidation in a corrective three waves following this five up, that would be a good,straightforward setup to attempt longs on these charts, for those of you who are still looking for an entry, or an opportunity to add. And then placing the stop underneath that May low. So just something to put on your radar.
Again completing that 5 up, room for a little bit higher in the fifth, but can then give us another corrective pullback, I would say in the case of RIOT to maybe 28 to 24, and opportunity for an entry there and the stop underneath the May low.