After a brief leave of absence, we’re back and with more trades to get you back in the game. Today, we are looking at a stock that we seldom have on our radar, but with the setup we are being presented with. For Applovin Corp. (APP) we have a basic key level of support at 37, which for us can mean one of two things.
Depending on the overall market, we could either look at this level as a bounce level, which would make sense in conjunction with our calls at support and puts at resistance system, or puts should this level fail.
This level has shown it can hold up against a attempt to break it and move lower, however, a level that is tested repeatedly may become weaker and weaker with each additional attempts as buyers get tired of trying to prop up prices.
If that were to become the case, and if the market remains weak overall, traders could look at the break of this level to bring lower prices for the stock. As always, we will let price action, as well as multiple confirmations of either trade be our guide on whether or not we take either trade, never prediction to lead our hand.
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