Traders,
Last week was a solid week, with some of the standout performers from the watchlist being AAPL, UBER, and BNAI, along with the others, which saw significant directional momentum and conformed well to the laid-out plans.
I’m excited to share some fresh ideas with you for the upcoming week. I will outline my thought process and entry and exit plans for my top ideas, which could make significant directional moves this week.
So, let’s get right into it.
Consolidation Breakout in Tesla
Although the stock is beaten down and in a downtrend, and sentiment remains bearish, with a looming catalyst on the horizon and a decision set to be made on Thursday regarding Musk’s pay package, I think a multi-day bounce is possible. I’m prepared for either scenario, as I think a directional move will happen this week in either direction. For a long, this is what I am thinking.
Of course, I will only react. The chart’s clear setup and key levels allow me to react to the price action.
*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 conditional, reactive plan for Tesla:
IF the stock breaks above short-term resistance and the previous multi-day range, I will enter long with a stop below the day’s low. The first target to take some risk-off would be $186 from 5/21, which could act as a potential area of supply and resistance. After that, as long as the stock is holding its intraday VWAP and remains strong, I will trail my stop conservatively, given the bigger picture, on the 5-minute chart, targeting extensions from vwap and intraday higher highs to take profits.
Similarly, here’s my plan for the short:
$172 key support and the 50-day. Once that area convincingly gives way, I will enter short for a swing move. Like the long idea, I will short on a breakdown / lower high versus the high of the day or breakdown level. The first target to take risk-off and begin trailing my stop will be near $168 – $167, just under a 1 ATR move from the breakdown zone. After that, like the long, I will trail my stop on a 5-minute chart, conservatively, for a multi-day move looking to cover extensions from VWAP and significant new lower lows.
Everyone’s Talking About GME
How can I not talk about GameStop? Look, from a swing perspective, I am not trading it. There is too much risk, guys. You could be long, and a massive ATM hits. You could be short, and RK releases a new YT video overnight, which sparks a whole new wave of optimism and enthusiasm. Ryan Cohen could announce an acquisition or a strategic plan/turnaround. Either way, there is too much risk at the moment, in my opinion.
*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.
So, where is the opportunity going forward? Well, for me, I will be reactive to critical areas. For example, barring news or developments, if the stock popped back into a potential area of supply, like near $35 on Monday, I would be looking for a short intraday. Alternatively, if the stock washes lower and comes into previous support near the mid- to low $20s and puts in a higher low, I will be thinking about a long trade intraday. For now, that is where the opportunity lies, barring any significant developments or breaking news in the stock. However, it could take several more days for that ATM to be completed, so that is something to keep in mind, along with the upcoming shareholder meeting on June 13 and whatever news follows.
Additional Ideas:
RDDT: Looking for a multi-day consolidation to form / a couple of inside days, offering a fresh long entry once the range breaks. I will discuss this in more detail if / when it is set up and the chart conforms.
*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.
TPHS: Incredible selloff from the highs on Friday. There are tons of dip buyers, and longs bagged in this one. Doubtful, however, if this can push back into $0.3 – $0.4, I will target a short versus the high of day/failure spot and hold for a move back to mid-teens.
*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.