Can $FOUR Shift into High Gear? – March 22, 2023

by DAN FOUR 
This is Scott with your Chart of the Day. I will be honest, after J Powell’s speech today, there aren’t that many good-looking charts. In fact, there are a lot of broken charts in the market right now. And so I do think it is probably going to take a while for a lot of these broken charts to set up again.

This chart, which I am showing you right now, is Shift4 Payments ( NYSE: FOUR ). Despite the carnage, it is actually not broken. Yes, it did have a bit of a pullback today, and you can see it had clear rejection right around that high 70.00 range. But it still didn’t break support, it is still above all the major moving averages here. And it didn’t even come back down to the 21-day, despite what happened in the SPY ( NYSEARCA: SPY ) and the Q’s ( NASDAQ: QQQ ).

This is one that I am watching. It is a stock that I am, as Dan Fitzpatrick would say, stalking. I want to keep this one on my radar because despite the pullback in the market, as I said, this one held up okay. Now, that doesn’t mean it can’t fall down and even fill this gap here to the downside if the wheels come off the market. But the fact that we had a bad reaction to the FMOC announcement today and this stock held up okay, means I want to watch it.

So I am going to set an alert on my software right around these highs, right just under $71.00. And then I will look for a breakout through that level, coming on high volume. Now, this setup is really only valid if breakouts start holding. And as we know, as swing traders and people like myself who trade momentum know, you have to be careful in a market that is tentative with breakouts.

So I will be looking for a strong move, but I want to see that volume come in to prove to me that it is not just a short-term or potentially low-volume breakout that has a higher probability of failing. So I am building my watch list right now, just in case the market does firm up, and this one, Shift4 Payments ( NYSE: FOUR ) is on it.

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