MRVL is expected to face strong resistance at 241.45, leading to a likely decline and short opportunities.

Now, for me in Plan B , I'm taking a look here at Marvel, MRVL. So, the same thing. I want you to take a look at the chart and try to identify the gaps, and where Luton might be looking to enter this deal; I'll give you a moment to pause the video and take a look.

Okay, for me right away, remember that we are looking at the bottom of the red zone, 241.45, there will be a clear resistance level there. Why is this gap important ? Why is it meaningful?

Okay, look here at the small letter "e", which stands for earnings. That would be a reflection of the decline that occurred due to profits . A reversal that led to a decline of approximately 17% after the stock announced its earnings just last week.

In addition, this rise towards this resistance level would represent an increase of more than 20% from its lowest levels, which makes a decline likely. Well, if this happens either next week or the week after, I certainly think it will be a massive resistance level, and one of us, at least in the trading room , will be shorting it as a potential day trade.

Now, the interesting thing about this graph is, let's say it reversed and completely collapsed, well, we can also use the gaps downwards. If the price drops to 194, 193.78, I expect there to be support there, but it would have to drop by 12%.

So, in this case you are essentially getting a double deal, two deals in one. You get a level for short selling and a level for buying.