For today’s Stock Waves Charts of the Day video, let’s start off with some recent wave setups we've added before revisiting some cryptocurrency stocks.
First off is Boston Scientific (BSX). This is a chart that we continue to like longer term, filling out that primary fifth wave off of last year's low. The initial intermediate 1-2 completed at the November low and started the third wave since then.
So the question then assuming that again, we're starting that larger third wave is: Is the high that was made in April just the minor degree initial wave 1 of that third, pulling back in wave 2? Or d we have a 1-2, 1-2 start as a slightly more bullish interpretation here in red.
The red count really relies on price holding between this 50% and 61.8% Fib. So, between 40.71 and 39.82. It does look like with the drop lower today that it wants to reach a little bit lower in this wave 2.
That is support to watch for the more immediately bullish potential in red, below which would start to favor instead the blue count -- that minor degree wave 1 and pulling in wave 2, which allows for room for a little bit deeper. Now you have overlap between the 38.2% retracement for the blue count and the 61.8% retracement for the red count. So blue count could still bottom at that same 39.77 level. But it does otherwise have room down to 37.04.
So, you could approach this as far as layering into a position if you're looking for that much longer-term potential for the third wave heading substantially higher overall, either the minor degree third or the intermediate degree third. Or you can play it a little bit more conservatively, at least near-term here. Again, if you set a stop underneath the current May low, there's a decent chance of getting stopped out. But that's the tightest kind of stop you can use right now.
You could otherwise place one below the 61.8% retracement here at 39.83, which would again start to favor the deeper pullback scenario in blue over the more shallow pullback scenario in red.
Next up is The Kroger Co. (KR). It does look like the wave ii here turned into a wider flat, but aside from that still holding upper region of standard support for wave ii. The 38.2% retracement does have room to reach a little bit lower. If needed, the 50% or 61.8% retracement would be the next support levels at 35.01 and then 34.28.
But assuming price is able to hold at that support range as the wave ii, it looks good for a turn back up from there within the wave iii of (c) with an ideal target around 45 and change before that completes.
So, you can place a stop either underneath the 61.8% retracement, underneath the 78.6%, retracement or below the March low for full validation for that setup.
Let’s move on to Matador Resources (MTDR), one of our oil and gas charts that we cover on a more regular basis. Price on this chart, especially compared to some other energy names, which are not currently trading at the highs, seems closer to an attempted breakout in our wave iii of (v) then some other energy stocks. So that suggests our wave ii here could have completed, maybe it's a running flat. A sustained breakout can place price in that wave iii, which could even move the overall target a little bit higher here. It's going to be a standard impulse. We're looking at maybe 44 to be breached before this wave iii completes.
But there’s a decent risk/reward if you want to set a very tight stop below the low that was made last week. If you want to give it a little bit more room, again it’s not looking as likely this will turn into wider flat but if that did happen standard support for wave ii down to 24.73 is the 61.8% retracement.
Next up is Tilray (TLRY). We're still just barely getting some turn up off of the lows that were made earlier this month on a lot of our cannabis charts. So, just realize if taking a position here -- although really good risk/reward for that potential start to the fifth – just realize that we don't have a whole lot of confirmation off the low yet. It looks like three up so far, but we haven't really gotten a clear indication of a trend change yet. There are some higher highs and higher lows, and traders could set a stop below the current low in i for that potential fifth wave move.
Other stocks in our Stock Waves Charts of the Day video include LULU, SFM, FUBO, and a revisit of some crypto stocks like RIOT, MARA, and SI.