Hi Shoppers,

Grab a match …

It’s time for a candle lesson.

The bullish engulfing Japanese candle is found at the bottom of a downtrend. It signals a possible change in that trend, a rally or a bounce.

This candle has a green real body, meaning the close was higher than the opening for the day. That green real body completely engulfs the previous day’s candle. It shows that the bulls have taken over, the bears have covered and it’s the end of the downtrend.

This is what it looks like on a chart:

Now, let’s apply it to a trade idea …

Kinder, Gentler
Check out the Kinder Morgan (Ticker: KMI) chart and the bullish engulfing candle created on Friday:

KMI has also bounced off a pretty significant support level that goes back to February 2022.

Looks to me like KMI can trade back up to $17.50 and possibly close to $18 where the 50 and 200 day moving averages line up.

Looking at the calls, I like the April 14 expiration:

I think the April 14 17 calls have a chance at doubling.

Trade Review

On Friday I said it looked like the iShares Russell 2000 Index (Ticker: IWM) was ready to break down.

The morning started out lower overall but you literally had ONE CHANCE FOR ABOUT TWO MINUTES to get out before it rallied.

I missed it!

Did you?

Thanks for Reading … See You Next Tuesday,

Licia Leslie