$SDGR $ONEM $KNSA at Major Support Levels
Updated: Aug 17, 2020
$SDGR, $ONEM, and $KNSA are three stocks that are pulling back to their 50-day moving averages with major support levels below. I like to look for stocks like this because they offer nice setups in terms of risk to reward. My mindset is anything can happen and there is a good chance that I will be wrong. If the stock heads lower, no worries. I simply sell when my stop loss is hit. However, if the support holds, the stock may go on a strong run higher.
In addition to the 50-day moving average, these three stocks also have their breakout levels below. When old resistance levels are broken, those levels often become new support levels as traders who missed the breakout rush in to buy at this second opportunity. In the stock market, anything can happen. That is why it is best to use charts to help size up the risk to reward of each trade.
Full Disclosure: ONEM, SDGR, and KNSA are stocks I currently own.
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