 Alright folks, tonight I want to share with you a very typical textbook bullish setup for an entry when something like this happens pre-market, you have to know that this needs to be in your toolbox in order for you to be able to play it. Now this was the XOM play call this morning. The pre-market activity showed action above 59.4 and why is this 59.4 important? I'm showing you this. Look, first of all, 59.4 is a line that exists from, look I'm scrolling back here. There was support and then it fell below in early 2020. Then it started coming back up, it blew through it and rejected it and then it came back down. So basically we're opening above the 59.40 and this is why it's important and there's room all the way to 62 before anything stops it from going up. So I'm closing in, zooming in here on 59.40 and it's 59.40 and also 59.48. Why? This is the high that happened, high that happened at 59.48 and then it rejected 59.40. I mean, we're very close, it's eight cents apart, however, look at how it's important. This is only a few days back, right? Again, this is Tuesday, which is yesterday. That 59.48 rejected and then again 59.40, let me zoom in here, 59.40 rejected it and then look at what happened after hours in pre-market. It went above it. So basically this is the typical move and this is why I'm telling you this is the typical move that you need to have in your toolbox and you need to be able to see it. Look what it does. Basically you have a resistance line, ticker is trading under the resistance line. Every time it hits it, it gets rejected. So that's what it does. And then one day gets through it. So basically every time it hit that line we were in seller's territory, computers and traders were saying, oh, this is the line we're selling. Soon as we get above it, these guys no longer have a reason for selling because they're above the original selling point. So now we're above it. What's going to happen? Either we shoot through right through it or we come down to test the line support and then we shoot back up. Look what happened today. We were opening above it. We went to the line 59.48 and the yellow line is 59.40. This is why I told you it was important. We went right on it and then started going up, going up. So basically this is a very typical move. You will see these moves very often. Obviously you need to be bullish on the play. We were bullish on XOM. I believe that there will be a strong demand and gas over the next few months. And I believe XOM is going to take some good profit out of that. So this setup is prior resistance hitting a top and then through it down to test it and up. And we tested it right at the gate and up afterwards. So we alerted here the 60C because 60 was the resistance that we had pre-market. So anything above it was just gravy. So 60 calls for next week. We alerted at 69 cents and we ended up selling half in this area when we were a little above 100%. So we still have half our position for the rest of the move. But the idea behind all this is you have to remember that when this happens and when you have very little resistance above head, we come down to test it and then it shoots up. Then let me show you something. This is a typical move. Imagine this. We go up against it and then we go through it. This is pre-market. And then this is a pre-market high. And then right at the gate, instead of coming down to test it and going up, we do the opposite. We go higher. Now you have to look back. What's the resistance? What's the resistance point? In this particular case, the resistance point is very close to 62. No way we're going to get to 62 on this spike. We could have, but we're not. We went down, tested, get through it. In the event where we were to shoot through, this is pre-market resistance, shoot through and come back down, sometimes you will see all the way down to old support. So this, as you break through the old pre-market resistance, you would say, oh, this is where I get in because we're now in buyer's territory. Now this is the fake out. These are the tough ones. You have to look back. Is there any resistance point that we need to be aware of? If we get through the resistance point, then it's going to move further. If not, if it gets rejected, then you can move and look for something further down to find support on the way down. In this particular case, XOM did textbook rejecting prior to today. Move above on the pre-market, came down the test line, went to shoot up all the way up. So this was the XOM textbook explanation. Now this is the NVIDIA play. Comparing both plays, the XOM and NVIDIA is just to show you how when you have a tool in your toolbox, you saw XOM being bullish, broke through the line, came down the test it and took off. Now in this particular case, we were trying to find a bottom on NVIDIA and we had an analyst initiating coverage on it this morning with a PT of 800. This means some bullish move for NVIDIA. Now you have to take your time, look at it and this is what happened. I'm not going to cheat. This is the chart what it looked like before the market opened. So you know it started to tank at a certain point and that certain point is right there. That's where it started to tank yesterday, well if you call it on Wednesday before the market and then it started to tank. That was the support before the big draw. Now at the open this morning, this line, we're bullish because we're above it. So basically whatever happened yesterday is now behind us. So one would think that if we stay above that, we remain bullish. So as soon as the market opened, look what happened. It started taking off. It started moving up above it and literally I was kind of bullish on the play saying, okay, now it's going to take off. Remember what I said on the X1 play. This is the line. We were, well in this particular case, we were here, dropped under, went up, tested it and then we're taking off. This is what it looks like right now. However, I said be aware of what happened here. Is there resistance? Is there something, let's say it was like this. Is there a resistance point that could, let me start this over again, sorry about this, it dropped. It's taking off. Is there a resistance point here that will stop it from going up further, going to stop and then come down. I said it could even drop further down and then move up again. In this particular case, I'm going to show you there was this line 591.50. Look at it. This is what I meant. See it dropped here. However, there was another line of support that should now act as resistance and look what happened right at the gate. It went to the line, rejected it and came back down. Now I became very bullish on the play when it, see this green line, this long 200 EMA, how it was resistance here and then it became support. Basically, a lot of computers are trading, so they use it for support and resistance as well. So basically as soon as we touched it, rejected, we started moving up and then we really used this line as a support line. So this is when we alerted the entry right here for the 610 because 610 could have been a long shot on a longer play, but 610 for next week. This was alerted at 380 and I showed you the chart saying the top basically bridging back resistance back to the, down to support back to the double top. This is a clear double top. As soon as you reach that, either we do this and then up again, test it out or we reject it like we did today and down. This rejection is going to happen because here it happened, it's going to happen again unless you have extremely bullish nose, which we didn't have. So that's the very good point, very good area to take some profit. So we took it off at 595, which ended up being close to I believe 57% on the play. So remember, the XOM play was typical under, above, tested and up and this NVIDIA is a little different and it came down and then dropped, then up. Now it's support, then it goes up, but up on a previous line, you have to see these lines. These lines have to be drawn in your charts before you start trading and then it went down and this particular case, there was the long 200 EMA went down to it and then came back up the test line and this is where we took profit. So these tools need to be in your toolbox and I hope you managed to learn something out of it and use them in the future. Thanks for watching guys.