Traders,
I’m excited to share my top swing trading ideas for the week ahead. This week’s ideas will once again differ from last week’s as the market takes a breather amid the selloff in semi-stocks.
While there are undoubtedly top swing opportunities out there, it’s not as straightforward as it has been for the past several months, with several tech stocks breaking out of consolidations each week. Now, things are taking a reset, and it’s essential to adjust to it. Just like I did last week with the short-swing idea in the semis.
But, there is a catalyst with the potential to shake things up this week and cause significant directional moves.
So, let’s get straight into it as I share my actionable ideas, plans, and trade management for my top swing trading ideas for the week ahead.
Nvidia’s Annual GTC Conference
After going somewhat parabolic, the semis / AI sector has taken a breather over the past week and pulled back. This comes just before a major AI conference—Nvidia’s annual GTC conference—takes off Monday. With over 300 exhibitors, including Meta and OpenAI, taking part in the four-day conference, it’s not just a catalyst for Nvidia but for the entire sector and market.
So, staying in the loop with the latest developments and headlines will be necessary.
Regarding Nvidia, I am not looking for a multi-day swing. However, the chart has coiled nicely over the past week, presenting a solid, directional, reactive opportunity for me.
*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 the plan:
With coiled action, I am looking for either a long or a short, depending on the market’s reaction to Monday’s keynote address. It’s not a multi-day position but a potentially one-day trend play after the stock picks a direction.
For the long: Multiple time frames aligned, with $900 as the breakout level for the upside. Should the stock break through this level with volume, I will be long with a stop either at the day’s low or below the 5-minute low (I will be trading this on the 5-minute TF).
I will scale out of the position as the stock makes new intraday highs on the 5-min TF. My lofty goal is $950, and I will trail the stop using higher lows.
For the short: It’s the same as the long idea, just flipped around. If the stock breaks Friday’s low with authority, perhaps on an underwhelming announcement, I will be short versus the previous lower high or breakdown level if a serious moment occurs. As it works, I will scale out on intraday lows, trailing the stop on lower highs.
Bounce in SOXL
SOXL worked beautifully last week. It was undoubtedly the top idea on last week’s watchlist. However, after a straight week of selling and being significantly off the highs, I will now eye it for a bounce. It will be reactive to the action I see in NVDA and some other top holdings and heavyweights of the sector.
*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:
With the catalyst this week, this will also be a reactive trade. But with many of its top holdings, like AMD and AVGO, approaching key SMAs and significantly off their highs, should individual stocks within the sector find their footing and catch a bid, along with momentum in NVDA, I will get long for a multi-day bounce.
So, should relative strength and positive flows be present in the sector, I will get long SOXL with a stop at the day’s low. My first target for a bounce would be either an ATR up move or $45.50 – $46, a momentum breakdown level from last week. After that, I will scale out of the rest of the position on the 5-minute timeframe as the stock makes new higher highs. My stop will be trailed on the 5-minute timeframe, conservatively, as I suspect aggressive momentum and a clear trend. So, I will be out if it makes a clear pivot lower-low on the 5-minute timeframe and key holdings begin to display weakness.
Two Additional Backburner Ideas:
SOUN: Incredible staying power and short squeeze. They will be presenting at the conference this week. I won’t be looking for a long, considering how much the stock has already surged. Rather, I am eyeing pops to $9 – $10 for failure and potential sell-the-news setup.
VERB: Small-cap stock with an incredible volume surge on Friday. After the weak close on Friday, a ton of longs are now trapped and underwater. I’ll have alerts set for pops back into potential major supply zones, like $0.65 – $0.80. Should the stock push back into this area and fail intraday, I will look for the short versus the high of the day.