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Fan Yang

TD Ameritrade (AMTD) - Signals a Pullback Against the January Breakout; Buy The Dip?

TD Ameritrade $AMTD has been recovering nicely since finding support around $45.70 at the end of 2018. The recovery corresponds to a general stock market recovery that has been impressive as well. 

For AMTD alone, price action has broken above some key resistance factors in January. 

AMTD Daily Chart

(click to enlarge)

Bullish Breakouts/Signals:
1) Price broke above a falling trendline. 
2) Price broke above the cluster of 200-, 100-, and 50-day simple moving averages.
3) Price broke above the December high around $55, officially breaking the pattern of lower highs.
4) RSI pushed above 60 (bearish momentum died), and pushed above 70 (showing bullish momentum).

Pullback Signals:
1) Bearish engulfing candle during the 2/5 session.
2) Bearish divergence between price and the RSI after the 2/5 session.

Anticipating Support; Revising Previous Entry Orders:
- If price does pullback, I think the $51-$52 area would be a key support pivot to monitor. 
- The fact that price was able to make a higher high than Decembers suggest to me that I should be expecting a higher low.
- That means, my December plan for my dry powder at $42 and $40 needs to be revised.
- I am moving them up to $48 and $52

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