Why I figured bank stocks would bounce on Friday

Consider this daily chart pattern this week…                                                                                                                                                                      Good Morning! Friday was a wild ride of short squeezes… The overall markets were up, bank stocks rebounded, and big names like Apple Inc. (NASDAQ: [AAPL]( were up on earnings. But it’s easy to see the big moves after they happen. What you need to be able to do as a trader is to recognize potential plays before they happen... Friday’s done and gone and so are the opportunities you could’ve traded… So today I’ll show you how you can use the long-term chart to find potential trades — and this can work in many different stocks... I’ll show you an example from my top Friday trade plan and two other recent examples from last week below… Why I Liked A Bank Stock On Friday During my Friday morning live webinar I picked PacWest Bancorp (NASDAQ: [PACW]( as my number one watch… I liked it over $4.30 with risk just below $4 and a goal of $5+. [The plan]( played out beautifully — kicked off by a [dip and rip]( which is a pattern that’s been working lately. But there’s a bigger picture reason why I liked PACW … And this is a pattern you can look for on the daily chart of almost any stock… It’s the [first green day](. The pattern comes from my mentor, [Tim Sykes](. And there are a few components to the first green day that can make it a [higher odds setup]( First, it works best in beaten-down stocks… Stocks with ugly charts where it looks like there has been constant selling pressure. (These are likely stocks [loaded with short sellers]( Then ideally the stock will [have news]( ... Something that brings in volume and buyers who see the stock as a ‘deal’ and are willing to pay any price. That makes short sellers nervous. And when a beaten-down stock has news, high volume, and it has a gap up in premarket — that can signal a momentum shift. Especially if it’s gapping up over the previous day’s high or another key level on the long-term chart… Look at PACW as an example on Friday... The stock has been completely annihilated lately. PACW chart: 6-month, daily candle — courtesy of [StocksToTrade.com]( And when we’re talking about [hot sector stocks]( or stocks that are top of mind for traders like the banking stocks — the stock doesn’t necessarily need news. A bounce in the sector or news in another sector stock can be enough to create a bounce. That was the case with PACW… It had such a big gap down and sell-off on Thursday — after already having about 5 red days in a row — that there was basically nobody left to sell. That’s when buyers come in. The stock gapped up in premarket with volume, and it was off to the races. This is where you can look for one of our [intraday patterns]( like the dip and rip or a weak open red-to-green move for an entry… PACW chart: 10-day, 5-minute candle — courtesy of [StocksToTrade.com]( And as I said, [the first green day pattern]( can happen in stocks in many sectors… If it’s a hot sector or stock that stays on traders’ radars, it doesn’t necessarily need news to bounce back. Look at GD Culture Group Limited (NASDAQ: [GDC]( last week — it was a huge gainer on Monday… Then after a big selloff on Tuesday, it gapped up in premarket and had a 121% move from its opening price on Wednesday… GDC chart: 2-day, 5-minute candle — courtesy of [StocksToTrade.com]( Recent massive runner TOP Financial Group Limited (NASDAQ: [TOP]( had a similar move last week… After a big gain on April 28, the stock had a big selloff last Thursday. Then it gapped up on Friday morning and had a 48% move at the open going from $16.68 to $24.74… TOP chart: 2-day, 5-minute candle — courtesy of [StocksToTrade.com]( As day traders we can get wrapped up in intraday price action and patterns. But you can use the long-term chart to confirm your thesis... Also, consider recent themes, hot sectors, macro news, and massive recent runners that could still be on traders’ minds. These are usually the stocks that offer the best potential trades. Stay up to date with my thoughts and theories with [my Market Update videos three times a week](. Have a great Money Monday, everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade   sponsored   He Replaced His Entire National League Salary With Trading… A devastating accident ended Ellis Hobbs’ career, stripped him of his income, burned through his savings and left him working in a grocery store just to feed his young family. Now this former record breaking cornerback claims… “I’ll never play pro football again!” The announcement came when the former player shockingly admitted in a recent interview that he replaced his entire national league salary while making over $18,749 a month on average trading stocks. [Click here to see how he does it…]( sponsored   The Keystone Trading Strategy Behind Sykes’ $7.4 Million fortune Back in high school, Tim Sykes stumbled upon one simple strategy that helped him make $100,000 in the stock market before leaving for college… Then, he used the same strategy to make $700,000 as a freshman in college… And before graduating college, he had made over $1,600,000. (Yes, while trading the same pattern) If he could find and trade this predictable pattern over and over again, with ZERO financial experience… So can you. [>>Click here to discover the keystone strategy behind his penny stock fortune<<](   Recommended Membership Gifts   ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](     [Facebook]( [Twitter]( [Instagram]( [YouTube]( [Spotify]( [Click Here to Unsubscribe]( (As an Amazon Associate, we earn from qualifying purchases.) 13809 Research Boulevard, Suite 500, Austin, TX 78750 *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose. This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. 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