 Hey guys, what is going on? It's Brycat 2-3 here with Xtrades. Today, I'm going to talk to you about two tickers that I'm going to be watching both this week and into next week based on their technical setups. The first one we're going to go over is Mastercard. It's my personal favorite of the two based on the setup and the fact that I think it's likely to break out sooner and really has a strong risk versus reward trade off when the trade does break out. As for the other ticker, it's MRO. It still has a nice setup, but the trend is a little less matured. It's a little harder to tell whether we're going to see that test of trend line resistance and potential breakout this week or if it'll come in the weeks to come. That's really where I stand with both of these tickers, but let's dive into the MA analysis for the time being. Ultimately here, what we have is a really nice cup and what looks to be a handle forming. The first thing that I want to talk about is the uptrend leading into this consolidation pattern. With cup and handles, you are typically looking for continuation plays, and this is a perfect example of that. We had a really nice move from 310, 315 price range all the way up to the mid-380s back in mid-March. Then we took a rejection off of what is now acting as the resistance of this cup and prices have trended downward since and then had a nice recovery. Obviously, it's good to see that we had a strong price trend leading into the pattern, a nice healthy uptrend with good volume showing that prices deserve to be around this level and that's further confirmed by the recovery and prices that we saw after this first sell-off. Ultimately, this pullback, this retracement, wasn't a huge percentage of the price move that we had leading into the pattern. That's another good thing to see. It's a relatively small percentage retracement of the broader trend, and that's why a lot of buyers were still interested and why the stock remained strong even when there was a little more turmoil in the markets during those several weeks of trading. As far as the rejection on the second attempt of this resistance area at 389, it's a pretty low volume rejection and that's very common. The left side is typically the side of the cup that has the most volume and usually has the highest rejection. Obviously, the moving average is a lot higher because there's a lot more strength and a lot more trading bringing the price up to this level, but the raw value of the actual selling pressure is a lot higher than the rejection this go around once we tested that 389 price level. It's really nice to see that even though we're retesting that same price level, that less sellers are showing up and there's less strong of a rejection essentially. Hopefully, that exhausts a little bit of buyers in the near term and then we'll get a little more buyers that step in in the coming days or the coming sessions and really push this price higher after those sellers have been exhausted. Diving into the actual technical surrounding the cup and the price targets based on the pattern, the cup itself is around $30 to $35 in height and the percentage of meeting price target usually ranges from 65 to 70% in terms of meeting price targets after you get that confirmed breakout. We're going to just take the 65% number to be a little more conservative and that puts our expected move right around $22 and with our key resistance being 389 in order to get our price target, once we break out of this 389 resistance looking for that $22 move, we'd expect to see a move to that 411 price range, which ultimately coincides with the Fibonacci level based on the yearly trends. It's nice to see our price target coincide with a large Fibonacci level and on top of that, we do have a couple key levels of support that we could use if prices kind of continue to fall in the near term as long as no real selling pressure enters. That's really what we're looking for is we want to see, I'd really like to see this 380 level held personally to maintain my bullish bias especially in the near term. There is an earnings event coming up towards the end of the month that could definitely have an impact and obviously an earnings event will definitely change the stock's performance and make it a little more volatile and unpredictable just because you've got a new batch of fundamental news about the stock. So there's definitely going to be a bunch of manipulation around price at that time but leading into that, if we hold this 380 price level and even if we hold this 376 price level, this should be a nice zone where we have some good support, but if we break below that, that is when I would definitely lose my bullish bias in the near term. So ultimately, I prefer to stay above 380. If we don't stay above 380, then 376 is an area that we must hold but ultimately you're really looking to see prices make a nice bounce, a little bit of a reversal and then once you get into this 387, 389 price range and look for that breakout, that's really where you'd want to enter the trade. Once you get that volume confirmation and a strong breakout, that's where you'd look to see that nice move to the upside and a lot of buyers stepping in and there should be really free flowing price movement once we get above this area as I believe this is all-time highs. So it would be a really nice setup and ultimately just a really good high probability and high risk to reward ratio trade if you are able to time it properly and if you're able to catch this ticker before it does break out right at that cusp of that 389, 390 price level, that way you don't have to really worry about trying to expect a bounce off 380 or 376, take the guess workout, let prices recover off this handle that's forming and enter the trade once we do get that breakout of 389, 390 and let the price run freely upwards towards its price target. So ultimately it's a really nice setup here and I hope we do get a bullish breakout this week, potentially next week but it's a really nice setup and I highly recommend you keep it on your watch list because $22 is a strong price move both in terms of equity and options if you're able to get a decent contract. So that's definitely one that I would keep an eye on. As far as MRO, Marathon Oil is in kind of an interesting pattern here. It's in a falling wedge which obviously has bullish connotations to it and furthermore it's in a falling wedge that's happened out of an uptrend which is my preference. I don't really like playing falling wedges out of downtrends as much because I think they're a little less reliable but ultimately this is a nice healthy uptrend that led into this price pattern and obviously the prices are converging, volumes dropping a little bit over time and we really have kind of a nice squeeze that's happening here in between this 1050 support zone and the resistance area of this falling wedge. So really what I'd like to see here is just a nice move in the next week to 10 days probably and to see us hold this 1050 price level. If we drop below 1050 then likely this trend is just going to continue and you really don't want to just get into this trade if it's going to meander on so you want to watch for this 1050 price level to hold and you want to make sure that you enter this trade similarly to the next one once you do have that confirmation of breakout and then you could see a nice move to the upside. You could see based on the pattern which we'll get into a little more you could see a dollar and seventy cent move or so to the upside over a couple weeks. Bear in mind we do have an earnings event coming up again so just like MA that is likely to impact the performance of the stock so it's very difficult to determine how that will impact future price movements but based on the pattern a dollar and seventy cent move is definitely likely based on what we're seeing here. The reason being again looking at the first touch of resistance and the first touch of support we really have a height of about two dollars and sixty cents going from that 1310 top to that 1050 first touch of support and again that percentage of meeting price target for wedges it's usually a little lower 60 to 65 percent but the expected move would still be in that dollar 70 dollar 60 price range but again we don't know what price we're breaking out at so with this we'll have to wait for that breakout to occur and then you can get a better approximation of your price target and by adding that dollar and seventy expected move to the price at breakout. I do expect it to align with this kind of one of the previous tops that we had back in mid to early March that 1260 price area really is a sticky zone that I think our price target will align with that would mean again that we break out around 1090 so in this price range is where we'd have that breakout of trend and likely see that dollar 70 cent ensuing move there is definitely overhead resistance from a horizontal standpoint before we reach that so you're definitely going to have to be cognizant of that but again I do think that there's good potential for a strong move leading into the earnings potentially there could be a little more hype additionally as long as you're able to get the breakout of the current consolidation phase that you're in and and I would really like to see this play come to fruition as well because it is just a nice setup you have this horizontal support of 1050 that you can leverage and it's squeezing against this trend line resistance area in a broader trend that we know has a bullish bias at breakout and has pretty reliable price targets based on the height and furthermore you also have just a strong uptrend that led into the pattern in the first place which is just a great situation to be in because you can have confidence again that the price belongs in this in this range this is where a lot of the trading should be happening based on the actions of buyers and sellers previously so definitely feel comfortable with this analysis in terms of MRO and potential future price movements based on the falling wedge so ultimately MRO I am near term bullish as long as we stay above that 10-5 horizontal price level and again would really love to see us break this this trend line resistance area of the falling wedge hopefully around 1080 or 1090 to see us test this 1260 price level and one of the higher zones within that falling wedge that acted as a bit of resistance previously so that's really where I stand as far as MRO goes and again a similar bullish setup on MA was covered with with high risk to reward ratio and an overall good setup based on healthy price movements leading into the consolidation pattern and just a strong pattern overall that could yield some high returns so again MRO and MA both really nice bullish setups that I would highly recommend you keep an eye on this week and into early next week so ultimately that's all I had for you guys today if you have any questions at all please leave a comment below or feel free to reach out to me in the group chat but thank you guys so much for joining and I hope you had a great day thanks so much bye