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RxSetups 3/6/22

UNH: This medical play has been acting very strong. This sector works well during recessions and economic slowdowns. It is forming a bull flag breakout with volume. A breakout on volume could make this actionable. But a pullback into the 50 DMA could provide a much safer entry.

IMKTA: This is a smaller thinly name. It is a supermarket play. This again works well as a defensive play during bear markets. This stock has a huge short interest of 8 days to cover. This could trigger a strong short squeeze and make for a great short-term trade. KR's earnings really ignited this entire sector this past week.

SFM: This is almost an identical play as IMKTA but the market cap is larger and the float is much better. I prefer this name because of the higher liquidity for trading with size. It also has 9 days of short interest so it could make for a nice quick trade on an explosive move.

CLF: After a failed breakdown this steel producer rallied back higher on strong volume. It also has formed a double bottom-like pattern as well. The group is very strong and many leaders are extended. This is one that has yet to break out. So if you really want to be involved and are okay with settling for a sympathy play then this could be a nice name to play. I would want to wait for it to pull back so we can have a better stop loss level on this.

SBSW: This South African mining company produces palladium, gold, copper, lithium, nickel and zinc. Russia and China control much of the precious metals so conflict with them will cause businesses to move to other countries. This smaller miner is forming a beautiful 45 week-long cup formation. A bigger handle here would make for an ideal entry but if it does breakout to new highs on volume it could make for a smaller size position.

SCCO: This is a copper company that is in a very long base. It has moved away from the early entry spot of $69 but it is still in a much larger base that has yet to breakout.

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