Happy Saturday Traders
I hope you are all having a wonderful, restful weekend.
Today, I will present several new ideas, all of which hold the potential to make significant directional moves. As always, I will share my thought process and actionable trade plans with you.
Last week, my plans and watchlist were right on the money and played out well. You’ll notice, though, that although the ideas materialized per the plan, some took longer to play out than others and required adjustments to be made regarding the timeframe. There’s an important lesson: trade stocks based on their price action and how they are trading, not how you want them to trade.
Now, let’s get right into some fresh ideas for the upcoming week.
This week is arguably the most important earnings week of the season, with several of the most valuable companies reporting, like Amazon, Apple, Microsoft, and Alphabet. So naturally, my mindset will shift to in-play, intraday momentum trading versus bigger-picture market swings.
As it relates to swing trading, however, I like several isolated setups.
Falling Wedge in Coinbase
I’m looking for a similar move we got in MARA last week in COIN for the upcoming week. I certainly think that there are better vehicles to trade alongside Bitcoin than COIN, although now that Bitcoin has bottomed in the short term, I am looking for a relief bounce here and like the R: R that the chart offers.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Here’s my plan:
Considering that the stock might need additional time to set up, I am looking for a break above the $128 – $130 area with conviction. I want to see the stock push above the previous day’s high / $130 region and hold convincingly. At that point, I will enter my position long with a stop set around $125 – support from Friday and what will become the 2-day VWAP on Monday. Simply put – my stop would be there, as I wouldn’t want to see it fall back into the range after breaking out.
I see $137 – $140 as a potential resistance zone on a higher timeframe, so that will be my first target area to take off most of my position size. I will likely trail my stop using previous higher lows on the 30-minute chart, aiming for a $145 target.
Shorting Pops in PHUN
This was on the list last week. It offered a brilliant entry after the uptrend broke and confirmed a lower high/double top on Wednesday. However, the stock has still managed to hold up daily well.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Last week, I wanted a push higher to flush out some stubborn short swings, and that may have taken place. Going forward, I’m now looking for a pushback toward $0.40+ and fail to enter short again, and then patiently holding my position for a slow fade back to reality, under $0.20. Such a move could be the final bull trap before it slowly fizzles back down. If the price confirms and I get my desired entry, I will look to be patient with this, with a hold time of up to or slightly exceeding one week.
One Additional Idea / Side Watch
One additional, highly conditional Idea that I have alerts set for:
Solid multi-day runup in DWAC, the name that has led the charge for PHUN, before topping out into the event/catalyst, which was the New Hampshire primary election last week.
*Please note that the prices and other statistics on this page are hypothetical, and do not reflect the impact, if any, of certain market factors such as liquidity, slippage and commissions.
Now that it has topped out in the short term, barring an additional catalyst or significant short squeeze, I would be interested in shorting a failed move higher toward $42 – $45 and lower high confirmation for a 2 – 3 day fade back toward $30.
I will only fade this if it confirms intraday and provides excellent risk reward and a precise level to risk against. If the stock pushes back up and consolidates over $45 – $50, I will no longer be interested in a short-swing opportunity.
Additionally, should the stock continue to consolidate and form a bearish multi-day wedge, I might look for a momentum short on a breakdown for an intraday position versus a swing position.