In this report we analyze: Zoom, Slack, Marvell, Teladoc, Bitcoin and Chainlink

Please note the glossary of terms and techniques here and herehere and here

You can access our portfolio here. You can also track in real time our buys/sells/position updates in the forum. If you want to track us in real time, we recommend that you set up alerts to these 3 chat rooms, which can be done by clicking the link in the top corner of each chat room called, “subscribe for new topics.”  here. You can also track in real time our buys/sells/position updates in the forum. If you want to track us in real time, we recommend that you set up alerts to these 3 chat rooms, which can be done by clicking the link in the top corner of each chat room called, “subscribe for new topics.”  

In this week’s report, we look at the number of buys we’ve made over the recent correction. Almost all of the positions we bought corrected in a symmetrical, 3-wave pattern, which we used to our advantage.

We also take a look at our two cryptocurrency plays – Bitcoin and Chainlink. From a long term perspective, both are setting up for extended uptrends. However, in the short to intermediate-term basis, there could be some volatility ahead. We outline the path we are taking with both.

Zoom (ZM)

On August 10th, as it appeared to be setting up for a pullback, we laid out two potential paths that Zoom could take. The red path assumed that the large degree 3rd wave had topped. This was setting up for a relatively deep pullback. The green path assumed that we were only going to see a minor pullback and that the large degree 3rd wave had more room to run.

Based on where Zoom bottomed, and how it broke out to new highs, it appears that the probabilities have shifted towards the green path. The below chart outlines this path.

We will want to see Zoom’s recent breakout zone between $280-$285 hold. So far, it has closed 2 days above this zone and it did so on heavy volume, which is an encouraging sign. The Accumulation/Distribution line (A/D line) is also encouraging. It’s suggesting that smart money was buying into the correction as it continues to make new highs with the price.

By focusing on the green count in the above chart, we can get an idea of why it is likely this will be the path Zoom will take going forward.

Since bottoming in April, ZM appears to be tracing an ending diagonal pattern. This is a series of 5 waves that tracks a trend channel (in gray). That would make the recent downtrend the 4th wave, and setting us up for the final 5th wave in this move. The evidence that the 4th wave in this pattern is over is:

• Note how correction unfolded in three legs (blue a,b,c). The length of the first leg (blue a), fell 15.6%. The length of the 3rd leg (blue c), fell 16.2%. We commonly see corrections unfold in a symmetrical fashion, where the length of the 3rd leg down (C) is within a few percentages away from the length of the first leg down (A).
• The correction tagged a common retrace level for 4th wave corrections, which for Zoom is around $235.
• The correction found support on the outer regions of the trend channel.
• The price has made new highs.

This would put us in the final 5th wave, which is targeting the upper region of the trend channel. There is still a chance that Zoom could fail this breakout and make a lower low; however, the probabilities are not in favor of this scenario as of now. We have guided five successful entries with Zoom so far. We believe that when this move completes, we will have an opportunity for the 6th.

Slack (WORK)

Slack is a position we recently added to, as well. Like Zoom, note the three leg correction (blue A,B,C). Though it’s not perfect symmetry, the length of the C wave came within 2% of the length of the A wave.

The price found strong support on the 38.2% retrace level of the 1st wave from the March low. This was confirmed by the positive divergence we saw in the CCI.

Because of these signs, we added to our WORK position.

The confirmation we have received so far is in the MACD crossing over, for one. The second confirmation comes from classic technical analysis in the image below.

Slack has traced a classic continuation pattern known as a pennant. The price has zig-zagged within this pattern on decreasing volume, then broke out, followed by a retest of the breakout zone.

The only concern here is the lack of volume confirming the breakout. This isn’t as crucial as some might think. It’s always a great confirmation, but price can increase simply by sellers drying up. We will want to see the price hold above the breakout zone, and move higher, or else the correction may not be over.

Marvell (MRVL)

So far, Marvell has played out exactly as we planned from last week’s analysis. It appears to be in a 4th wave correction, which we typically see bottom at or between 2 specific regions. For MRVL, these regions are $34 and $31 regions.

Within this region, you’ll notice symmetry at work again. The length of the first leg down (blue a) is -13%. Then, the length of the 3rd leg down (blue b) is -14%. This, coupled with two buy signals that formed in the internals, had us add to our current position in MRVL.

We are expecting a bounce from current levels. We will want to see this bounce unfold in a 5 wave pattern on a smaller timeframe chart, like the 30 minute or hourly chart. If this does not happen, and instead gives way to another leg lower, we will happily add again to this position as long-term investors.

Teladoc (TDOC)

Teladoc had a sharp drawdown after announcing the acquisition of LVGO. Based on the information given to us in the structure of the drawdown, we identified two support regions in prior reports, the first of which is around the $174-$173 region. It seemed probable that we would see the price hit this level. However, in technical analysis, you have to be prepared to change your thesis in real time if evidence begins to suggest otherwise.

This, we believe, is what happened with Teladoc last week. If Teladoc was to hit the $174 region, it would have to do so in a C-wave. That would make the current uptrend the B wave. What we know about B waves is that they unfold into 3 wave patterns, symmetrical fashions. This, as of now, is not what we are seeing.

Instead, what we have in blue is a 5 wave pattern pointing up. If this is the case, we have just completed the first wave of 5 to new highs. As long as the 2nd wave holds the $197 region, I will look to add as TDOC begins a new leg higher.

If $197 breaks, the probabilities shift that we may have another leg lower before finding a bottom. This is why I always start small when building a position. If this is the case, we will continue to add in tranches as we approach below support levels.

Bitcoin (BTCUSD)

In June, we announced that we are shifting our strategy with Bitcoin from a more active approach to buy and hold. The reasons for this shift was, for one, Bitcoin trades 24/7, which makes executing on identified setups quite challenging. We also believe in the long-term story to an extent that we are OK with the volatility.

Furthermore, from the perspective of technical analysis, the below chart is a rare gem that also bolsters our decision to buy and hold the asset.

This chart is the percentage growth of Bitcoin from its inception. Using classic technical analysis, there are two continuation patterns highlighted in blue. These are periods of consolidation that follow strong uptrends, and precede the next leg in the trend. The bigger the pattern, the more meaningful it is, and both of these patterns took years to play out.

Where we are today is in the breakout of the second, multi-year continuation pattern, also known as a pennant. The weekly MACD supports this move with a classic coiling pattern following by a steep uptrend. This is the kind of long-term pattern that I search for.

In short, the technicals are aligned with the fundamentals. We will continue to seek out entries with stops for our members who are looking for a position and may not already have one.

Chainlink (LINKUSD)

Chainlink recently became the 5th largest crypto currency in terms of market cap, taking over Bitcoin Cash. Since we covered the coin in August, editorially, LINK is up over 500%. After navigating 2 entries below $1.80, we stopped out of both trades for greater than 40% gains each time. On this last entry, we began a buy and hold position at $4.

Chainlink is not just another alt coin. Instead, it fulfills a unique and needed role within the blockchain stack regarding smart contracts. We encourage you to read Beth’s analysis on it here.

Technically, Chainlink’s price structure is quite complex. It is trending up; however, with numerous drawdowns, the overlapping structure appears to be in a large degree leading diagonal pattern. The below chart outlines the count that LINK appears to be following.

The only question to answer is the end of the 3rd wave. We typically see the MACD hit peak levels on the 3rd wave. The fact that it has rolled over hard supports that the 3rd wave may be over and we are in the early stages of a deeper pullback.

However, Link is finding support on the 20-day EMA in blue and holding (look at the chart below). If Link can hold, then break above $20, it supports that the 3rd wave can extend further, which we will want to be part of.

So, we have created a basic plan of action, outlined below.

• If LINK cannot hold the 20-day EMA in blue, the final level the 3rd wave must hold is the $12.50-$11.80 support. If these levels hold, and we then break above $20, the 3rd wave has more room to run.
• However, if the $12.50-$11.80 region breaks, we are in the 4th wave correction and should expect a deeper pullback. The first area of support in this scenario is the $9.80

For those that may think a drawdown of this magnitude is extreme, I encourage you to look at LINK’s relatively short history. In less than three years, there have been 21 drawdowns greater than 30%. Of those 21, eight are greater than 45%, five have been greater than 70%, and one was an 89% drawdown.

Chainlink is a volatile asset. Furthermore, it’s contribution to the blockchain microtrend is necessary, but still early. We consider this a long-term hold and expect a choppy ride. We do not believe that anyone has missed the uptrend, and that there will be many opportunities for entry. We will continue to add to this position when we see the setups forming.

Throughout last week, we laid out ranges in the S&P 500 where we will be potential buyers again. The update on March 10th discussed the sudden move and why we are viewing any bounce as an opportunity to build hedges and raise cash in positions where we seek a lower cost basis.

There were two scenarios provided given the sudden market drop last week:

(1) we’d have a deep correction or shallow bear market that would find a bottom between 2645 – 2520 with a potential spillover to 2500.

(2) or, we’re in for a bigger bear market that can find a bottom between 2340 – 2100.

I want to note that the market cut through the 2600 region with little hesitation and closed sub-2500 last Thursday. The overnight action in the futures market found a bottom in the 2400s before a much-needed corrective bounce that happened on Friday.

With realized volatility approaching record highs, many back-to-back ~9% days, and price unable to find support at key levels, this helps put into focus the scope of the bear market we are likely in. Within three weeks, the has market erased the gains that it took us 1.3 years to build. In short, we haven’t seen drops and rebounds of this magnitude since 2008.

With that said, this will be our last market update until next week as we now turn towards updating our conviction list with target entries. We followed our stops on many positions and are now working towards re-entry using the broader market as our guide. The story did not change on the stocks we’ve covered on the Top Stocks list. The conviction levels have also not changed, with the exception of Zoom – we are raising conviction from 8 to 9, even in light of its current valuation.

How I designed my risk management strategy

I personally got licensed in late 2007 and began my carrier in finance just in time for the great recession. In late 2008, I took over the Bay Area territory for my company and began developing relationships with countless financial advisors, RIAs and various CIOs regarding portfolio analysis as well as the implementation of passive ETF strategies within a portfolio.

Back then, ETFs were new and passive investing was not well utilized in portfolio management. This helped me get in front of many professional investment portfolios and strategies. Buy and hold is the ultimate goal. However, in rare cases where there are +50% drawdowns, like in 2008, I have found risk management to be crucial for the portfolios I personally handled during those years. 

With this came my use of creating plans based on the broader market, back up plans, using stops, hedges and position sizing and other tools. I’ve regularly and openly discussed these to navigate volatility while investing with a long-term time frame.

As we have been doing from the day we launched, we will also cover targets for stocks where we have a low-cost basis already. We believe we are one of the only sites that continually covers pricing. We do not simply publish “buy recommendations” or a buy list. We hope this extra effort is worth its weight during this bear market. 

Daily Chart

For any readers who are interested in how I came up with the 2100-2340 scenario, I’ve included some charts below. They use a combination of Elliott Wave counts going back nearly a century, with Fibonacci ratios and standard technical analysis.

I believe we are in a C-wave down. The C-wave is a 5-wave pattern pointing down. It is characterized as a powerful move that shifts sentiment to an extreme, which is exactly what we are seeing. Towards the end of a C-wave, sentiment typically hits a hopeless state, and without a game plan, investors tend to make the wrong decision at the worst time. Investors collectively feel panic in unison, watching the same situation unfold, and it leads to moments of capitulation, usually right before the market reverses. We want to do the opposite and use technical analysis to remove the emotion. If you followed our stops and hedges, you should be sitting on a nice pile of cash as well as having some long volatility plays to counter the losses on the long side.

From what we know about 5-wave structures, I estimate that we are in the final stages of the 3rd wave, and are likely in the corrective move of the 4th wave, which means we have the final 5th wave down to go.

One of the technical analysts who I respect and uses similar tools thinks we could see a termination as low as 1800 over the next few months. My count is calling for 2100 as the deeper bear market bottom. I’m not sure I will push it this far for target re-entries. Either way, we will spell out our targets for each stock around this time next week.

Hourly Chart

The above chart is meant to show 2 basic things: (1) how the downtrend, so far, is following the expected 5-wave pattern down; (2) the amount of resistance overhead, which makes a standard V-shape recovery unlikely.

If you feel like you have missed out on the bottom, please note the level of resistance above the current price. There are numerous unfilled gaps, two bear market trend lines, multiple simple moving averages and the 3140 peak – all while facing unchartered territory of a virus pandemic.

Where We Go from Here

The major risk to the coronavirus, as it pertains to the markets, is a lack of consumer spending. Will the extreme measures of canceled schools, postponed professional sports, Disneyland closures, etcetera last for three weeks or eight weeks or something completely unpredictable. The spiral effect of consumer spending matters here.

The second risk is quantifying the exposure the financial sector has right now to the buildup of risky debts in the system, which is why the financial sector ETF (XLF) is leading the charge down at 25%, and the regional bank ETF (KRE) is down around 37%. If and when this scenario plays out is anyone’s guess.

To put a stop to this bear market, we will need to see the market close first above 2950 and then 3150 to note a new uptrend in place. However, the bear market cannot fully be squashed until we make new highs at 3400. I find this less likely than my bigger bear thesis, at this time.  

Position Updates

If you look at the Top Stocks List we published about ten days ago, you’ll see a column with stops. We followed those stops and logged gains on Chainlink at +44%, Shopify at +35%, Trade Desk at +32%, Telaria at +26%, BOINGO +9%, ALTERYX +9%, ELASTIC +5%, WORK +2%. We took losses on DATADOG -2%, BITCOIN -4%, Dynatrace at -9%, Inseego at -16% and a second position on Roku at -23%.

We do have some longer-term buy and hold positions that are unshakeable no matter how deep a selloff. These are Nvidia, Alibaba, Roku and Microsoft (we also provided stops for anyone looking to establish positions in these stocks within the last 6 months. We have been building positions for years in these positions, which is why we are willing to weather the drawdown with them). Subsequently, these are the stocks that Beth first covered prior to launching the site on Seeking Alpha. We were able to get a low-cost basis because of the Q4 2018 pullback.

Also, we are still holding Zoom (ZM). With the widespread use of Zoom into the global community through this outbreak, we have decided to both: 1) raise our conviction level on Zoom from 8 to 9, and hold our current position without stops. We are prepared to weather any drawdown that may come from panic selling due to our hedges, and will add to this position on any potential weakness. If you are uncomfortable holding without stops, please continue to use our recommended stops on the spreadsheet.

Zoom now joins a few other stocks that we hold without stops and have high conviction on: Nvidia, Roku, Microsoft and Alibaba. We fully expect many stocks on our list to join the “no stops, buy and hold” club in our portfolio after this bear market offers stellar long-term valuations.

We view this bear market/steep correction as a gift and will be re-entering any positions we stopped out of. As I mentioned above, our task over the next week is to evaluate each stock and publish a target re-entry for our readers. We expect that the broader market analysis we’ve diligently worked and laid out for you during this tumultuous market to be a good base for creating re-entry points. Without having done this work, re-entry would be complete guesswork rather than based on probabilities.

Lyft (LYFT)

So far, we are around 30% up on our Lyft short since discussing the hedge. We discussed waiting for a bounce to add. On that bounce, we initiated a short around $34 and so far, it’s been a remarkable hedge. We added more on Friday’s corrective bounce, which we disclosed on the form under Hedges, and we expect a bounce in the coming days/weeks as the price works off oversold conditions.

If Lyft crosses the 8-EMA, we will exit the short. We will look for re-entry when the market tops out, or breaks back below the 8-day EMA, which is currently sitting around the $30.

For all hedges we have a predefined exit such as using an EMA crossover, 25% trailing stop, a notable candlestick pattern, etc.

For these hedges, we will use the 8-day EMA as our stop going forward or a 25% trailing stop, whichever comes first.

Uber (UBER)

Our Uber short is up about 24% since our entry. We added more in the Friday rally, and will look to add more as the market tops out. You’ve heard me talk about symmetry on corrections. The symmetry on Uber is remarkable so far. The length of the first wave down (A), so far, is the exact length of the 3rd wave down (C).

Notice how the price closes right at the 100% extension of the A wave for 2 days in a row. If this level breaks, expect the 1.272 extension to come into play around $19-$19.50. We will use the 8-day EMA as our stop going forward or a 25% trailing stop, whichever comes first.

Slack (WORK)

We stopped out of Slack when it broke the $24.25 stop out price. We logged a fractional gain and are looking for re-entry. Considering that the structure now suggests that we are in an A,B,C  corrective pattern, the C-wave should target around $14. This is the 100% extension of the A wave.

The strong hammer pattern coupled with the fact that smart money is buying and the RSI is oversold, suggests a retest of the $24-$25 region. For any longs on today’s low, I’d watch for these levels. A fail there would suggest a potential retest of Friday’s low, at which point, I will look to re-enter.

The $16 price target will be the area I will look to build a new position.

Roku (ROKU)

Roku is a buy and hold position that we own with a cost basis of $29.88. This portion of our portfolio is being held without any stops.

However, we are always looking to add more in weakness. We like Roku and we like that it gets beaten up because it provides for new entries. Beth strongly believes once this company turns profitable, it will enter a new stage from volatile/speculative (market’s opinion) to a market darling. She’s laid out why she likes Roku in great detail across PDFs, blogs, etc – mainly hinging on Roku’s ownership of the operating system, device and ad exchange plus the mega trend of Connected TV ads.

The above chart outlines our recent plan for adding to Roku. This new position we held with a stop around $86. We layered in at $125, $115, and again at $100 with a stop just under $86. The stop was triggered and we sold this new position on Roku for a loss.

We are looking for re-entries, and suspect that we will be range bound in the coming week. Notice the shooting star pattern as well as the hammer pattern. This suggests strong volume at $86 and $74. I wouldn’t be shocked if Roku struggles to break out of this range.

Next week will be telling. One thing is certain, on the daily chart, the MACD is making new lows and the histogram has not moved up. Buying Roku in the $70 range is a phenomenal value; the broader market is likely not done yet with its sell-off per our TA above, hence we are back on the sidelines for our new position.

Datadog (DDOG)

Datadog blew through our stop at $39.60 on a large gap at the open of the market. We sold just under the stop due to the heavy volume, and ended up logging a 2% loss. The reason we chose this stop is because it was the absolute lowest level DDOG could drop while still maintain an impulsive 5-wave structure. Below this level and it sets up an entirely new structure, which we believe puts us in a C-wave down.

It’s worth noting that DDOG is very oversold and the MACD, at new lows, is straying to turn up. For anyone attempting to speculate on a bottom, this would be a good level to try. We are believers in this company and will look for a re-entry.

In fact, when the market broke down into the 2500 region, we announced that we are putting money to work. This is one of the positions we bought around $32. This was a speculative play to attempt to catch the shallow bear scenario we outlined. We will look to add more and will update you on target entry next week.

Pinterest (PINS)

We recently attempted to buy Pinterest above its all-time lows, with a stop just below that level. We stopped out with a 2% loss, once PINS made an all-time low below $17.39, and missed out on a large amount of the current downside. The question is – how much lower can PINS go?

The RSI is confirming a bear market, and is also suggesting a continued bounce for now. However, the Accumulation/Distribution indicator does not show that the Smart Money is buying PINS at this level. If Pins breaks below $13, then we can expect the selling to resume. However, if PINS can break back above the $19 region, it will invalidate my current expectation, and be strong evidence that the bottom is in.

Bitcoin (BTC)

 The above chart shows the long-term path we are tracking in Bitcoin. When looked at from a logarithmic scale, and not a price scale, it really puts into perspective the pattern as well as the bubble that caught the popular attention. The long-term trend is something we want to catch, and though the weekly risk management may be frustrating, it’s necessary when dealing with such a new and volatile asset like Bitcoin.

The micro chart is where this will play out for now. In short, we have 5-waves up, which is now building another 5-waves up on a slightly larger scale. Remember, when 5-waves builds into larger 5-wave patterns, the more bullish the structure becomes. If the price can break back above $5800 and hold, then break back above $6100, this will support the green count. If we break back down below $4300, it supports the red count.

The problem with these counts is that they both stretch the rules of Elliott Wave theory. They are both valid, but also both rare structures. Trading this 4th wave has been frustrating, to say the least. However, once we get a confirmed bottom and a renewed uptrend, any losses incurred can give way to gains. Until the price makes a decision, I will stay on then sidelines. Please keep in mind that below $4300 puts $1600 in play.

Chainlink (LINKUSD)

Please note: Chainlink is a crypto not listed on the public markets.

LINK broke through our stop and also the floor underneath the impulse we have been tracking. In breaking below the peak of wave-1, it broke a fundamental rule in Elliot Wave and completely invalidates 5-wave structure we have been tracking since the last bottom around $1.65.

This changes the structure into a likely leading diagonal, which suggests that Link has farther to go in order to complete the 4th pattern. We will look for a re-entry when the pattern gets close to completion.

Chainlink requires strict risk management, so opening and closing positions with strict adherence to stops. If you’re not comfortable with this, it’s not the right choice. We have opened and closed our position about four times since August with reasonable gains between 30-50% gains. I am active on the forum with this but it does require more active management.

Boingo (WIFI)

For the last several weeks, we pointed out the setup in Boingo (WIFI). A cup & handle pattern was forming, and last week we spotted the bounce and trend reversal exactly at the 127.2% extension, which is a common place to spot short term trend reversals.

So far, the uptrend has been a healthy one – buying pressure increasing with price and volume increasing. This signals that more buyers are showing up just before the resistance.

Today, WIFI broke through our targeted breakout region, closing on the high at $13.98 with double the average trading volume. The internals are confirming what we are seeing – buying pressure is increasing with price and volume.

If WIFI can hold above this level tomorrow (Friday, Feb 14th), that will be a strong confirmation of a breakout, and the move from here could be swift. We have provided good setups in the past leading up to this moment; if you do not have a position in WIFI and have been waiting for a breakout, this is what we have been waiting for. 

We are raising our stop to just under $10.70 to protect our gains.

Slack (WORK)

Last week we noted that Slack was appearing to stall-out again within the range it has been stuck in for several months between $25-$20.

With decreasing momentum and a reversal at the 20% symmetrical tops we outlined in Slack’s prior attempts to breakout, we were planning on price, once again, retesting the $20 support. However, an announcement surrounding IBM as a listed client of Slack changed this setup. On heavy volume, Slack broke right through the strong resistance that has halted all attempts prior.

This move did so with the MACD supporting a healthy trend as well as the MACD-Histogram showing an increase with each attempt by buyers to push prices up. Both the MACD and the Histogram are making new highs, while price is breaking through its range on strong volume. This is the type of breakout we want to see and one that you should pay attention to.

Furthermore, the resistance zone that kept Slack bottled up is now support – So, $25-$23 is now the primary support zone for any continued uptrend. After breaking out, Slack attempted to retest the now support zone between $25-$23. This move was quickly rejected, which is also a bullish sign.

As of now, it appears as though Slack is in a well-defined bull flag pattern that has been confirmed by today’s close. All of these signs point to a healthy breakout. We went long on the breakout and have a tight stop at $24.25.

Chainlink (LINK)

Since bottoming just above our stop at $1.60, Chainlink (LINK) revealed a micro 5-waves up, which is a sign of a potential turnaround. On December 12th, we announced on the forum the setup, which was that we are going long at $1.80 with a stop at $1.60. Since then, we’ve added to the breakout above $2.

My current count on Chainlink has us in a strong uptrend with plenty of room to run. Chainlink recently broke out again at $3.40, making a new higher high within the range it was trading in. The next stop will be all time highs at $4.80.

The internals are all confirming a healthy uptrend, and LINK is a buy on pullbacks or breakouts. The 34-day EMA (the red line) has been the support since the renewed uptrend off the December 2019 lows. Any break of this trendline will signal a correction is underway, and should be monitored closely. We are raising our stop to just under $2.6 to protect our gains, in the event the current uptrend fails.

I posted my long-term targets in red on the chart. As long as LINK does not break down below $2, this target remains my long-term plan for now. Alt coins, like Bitcoin, are notorious for false breakouts and failed impulses. So far, the structure we are seeing is promising and is the type of trend we want to be invested in. With a asset this volatile, stops and position sizing are crucial. Even if do get a failed breakout, we will lock in a nice profit at $2.60, and wait for the next uptrend.

Please note that LINK is not a typical crypto as it’s tied to smart contracts which will be first in play for blockchain with smart contracts gaining a lot of interest from the finance industry. Reference the Chainlink PDF for more information.

Bitcoin (BTC)

In our first report on Bitcoin in August of 2019, we outlined that both the fundamental story is aligned with the technical story. We may be in the early stages of a larger degree third wave, which we have been following and covering closely. When confirmed, this will take us to all-new highs.

The above chart shows this long-term pattern, starting from the bottom of Bitcoin’s all-time top and roughly 85% drawdown. On the forum we spotted the most recent bottom and initiated a buy around $7100.

It’s worth noting that a close above $10,000 is a big deal for Bitcoin. Historically, it has been a psychological region of importance. The chart above outlines my general game plan for Bitcoin, and as long as we hold the $7,000, this will be my primary count and remain my game plan.

Another scenario is that Bitcoin pulls back, which will take us to the low $9000-low $7650 region.

MongoDB (MDB)

The internals are suggesting that MDB is stalling out as it approaches new highs. We have divergences across the MCD Histograms and the RSI. The MACD signal is on the verge of crossing over to the downside as well. All of this is happening while the price is making higher highs. This is not what we want to see from a stock poised to breakout to new highs.

For any current longs, the 34-day EMA has been solid support for the current uptrend, which is currently at $155. If this support is broken, I’d be looking to the 200-day SMA for the final support, currently at $142.

Roku

Roku has been trading within a descending wedge pattern since December of last year. We had a false breakdown in late January where the price tested the 200-day SMA (red). The next day the price went back into the range.

Prior to beating earnings, the price broke out of the wedge pattern to the upside, closing for 3 days above this breakout. The internals confirmed the move with an increase in buying pressure and volume.

Tomorrow, we will likely see a gap-up at the open. As of now, the price is set to open within the green resistance zone around $147. We will want to see Roku clear the $153 price target as the first hurdle, and then new highs before we can say the bullish trend is renewed. Long term, Roku has been and remains one of our highest conviction plays due to size of addressable market.