Yesterday, we looked at a monthly chart of ProShares UltraPro QQQ ETF, noting the stock has been on a bullish run since June 2019.
Today’s Chart of the Day is a Keltner Channel Chart for GSX Techedu Inc. (NYSE: GSX).
GSX Techedu Inc., a technology-driven education company, provides online K-12 large-class after-school tutoring services in the People’s Republic of China. It offers K-12 large-class after-school tutoring courses that cover various K-12 academic subjects, including mathematics, English, Chinese, physics, chemistry, biology, history, geography, and political science.
Now, the Keltner Channels serve as an overbought/oversold indicator. When the daily stock price is trading above the Upper Channel, it signals that the stock is overbought.
Stocks in a price uptrend do not advance in a straight line.
When a stock becomes overbought, it normally declines in price as the inevitable profit taking occurs — proving there are always price retracements along the way.
Below is a daily price chart for GSX Techedu Inc. along with the three Keltner Channels (Upper, Middle, and Lower).
A Keltner Channel “Buy Zone” occurs when a stock is trading below the Upper Keltner Channel. Once the daily price is trading below the Upper Channel, it signals a buying opportunity.
If you had purchased GSX shares when GSX entered the “Buy Zone” around November 27th, you’d be up 127.47% on the stock by now.
Knowing that GSX shares are continuing to rise, experience pullbacks, and rally again, we’ll be paying attention to future pullbacks in order to get in at the lowest entry point.
Maximizing Our Profit Potential
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On February 4th, we highlighted Leidos Holdings, Inc. (NYSE: LDOS), noting that LDOS had been hitting a series of higher highs and higher lows.
If you happened to have purchased LDOS shares on that day, you’d already be up 4.89%.
But… if you had purchased the right option contract, you would be up 91.25% in just three days’ time!
That’s the power of options.
That’s why we focus on leveraging options in my premium research trading and training service, PowerTrend Options.
I developed it to help people like you use my “X-Ray” system — a system based on pure, technical analysis. Members even have access to my most extensive training program ever…
A 30-day PowerTrend Academy, that uses videos, quizzes, and glossaries to help explain my system from every angle. That’s because I want you to see exactly what I’m doing — no secrets, no patented algorithms. Just the facts.
Not to mention, the service itself provides up to two trades every week.
Because I truly believe, and from personal experience, that one option trade has the power to completely change your life.
And for a limited time, I’m offering an incredibly discounted trial to the service. Click here for more details!
But we know that some people like to walk before they run… and so we designed a class just for them, called the Thunderbird Options Course. Complete with syllabus, videos, and quizzes. Check out the details if you haven’t yet!
Editor, Chart Of The Day