Chart of the Day (October 29, 2020)

by DAN SNBR 
This is Scott with your Chart of the Day. I know that there are a lot of big earnings going on tonight and tomorrow; it’s been a crazy week for earnings. I don’t want to take too much of your time as I am sure you are watching some other stuff. But I do want to bring Sleep Number ( NASDAQ: SNBR ) to your attention.

Sleep Number ( NASDAQ: SNBR ) doesn’t have earnings until next year so that’s nice, one less thing to worry about. But what it does have is a nice little sideways base of consolidation. This is something that I have been watching the last couple of days here. You can see, if I zoom out, it had a longer base of consolidation; it went sideways for almost 3 months. It moved up nicely, about 30 percent, and has just been consolidating that move.

That is kind of what this does; it has a nice move, consolidates. It has a nice move; consolidates, has a nice move. So now we are in that consolidation phase again and I think that this is one that could move if the market does turnaround. The fact that this stock has been holding up above all its major moving averages, during this market volatility, definitely shows some relative strength.

I have an alert on SNBR ( NASDAQ: SNBR ) at 65.50, that’s just around this high here. I think what you want to do is watch for it to get above and stay above that level and do it on higher than average volume. It could offer you a nice swing trade to the upside and get you in a stock that will actually let you sleep at night because it’s not that volatile, pun intended.

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