There Is No Better Place To Buy Than Major Price Support

There's not a lot that's going right for U.S. equities right now.

Treasury yields are soaring and that's putting a lot of pressure on stocks, especially growth stocks. Throw in the bearish seasonal period and it might be best to avoid stocks altogether. Still, as stocks fall, they become increasingly attractive, especially if they drop to a MAJOR price support level. Enter F5 Networks (FFIV), which has fallen for 8 consecutive trading days, testing key closing price support at 144.85:

F5 Networks (FFIV):

I'm not trying to say that FFIV is a nice-looking chart, because it's far from it. But the current weakness is resulting in many companies falling back to test major price support. If you trade mostly on the long side, consider using the current stock market weakness to allow stock prices to fall back to critical support areas - like the 144.85 on FFIV. The current range here is from 144.85-177.92. Buying near price support may certainly prove to be unprofitable, but you can keep VERY tight stops on long positions, which is extraordinarily important in volatile market periods like what we've seen in 2022.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.