Law Of Round Numbers:
The two biggest names in the XLY have a lot of say in the discretionary space, and they are both dealing with some very round numbers. And we know that stocks react at these certain levels. TSLA recorded a bearish shooting star WEEKLY candle last week that had a range of 125 handles. It looked as if it was going to make a move into the potential double bottom pivot right at the round 1200 number to start 2022 but that never occurred. The stock is now dealing with an upside gap fill from the 4/8 session which could be viewed as a bearish island reversal from the gap higher on 3/28. Below is the chart of AMZN and it bounced right at the very round 3000 number each day this week so far and Wednesday was the most impressive as it registered a bullish engulfing candle. On 3/30 it completed a bearish evening star pattern and the move above the 200 day SMA was a bull trap, and if the 3000 figure does not hold it will be trouble for the stock and the consumer group as a whole. Give the stock credit for todays action.