Traders,
I’m excited to share my top swing trading ideas for the week ahead. Last week was brilliant for swing trading, with many fantastic opportunities and momentum. My ideas this week will be similar to last week’s and continue to stick with what works in this environment, like the breakout idea I shared in IBIT / Bitcoin the previous week.
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.
Breakout continuation in IBIT / Bitcoin
Last week’s top mover and idea from the watchlist was the breakout in IBIT / Bitcoin. It was just a textbook consolidation that aligned on multiple timeframes and led to a meaningful breakout. It ticked all the boxes I look for, for this particular setup.
Now, the way Bitcoin is consolidating near the high of the move has allowed for another solid R: R setup to form in IBIT. With this particular breakout continuation, my timeframe, once confirmed, would be three days to one whole 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.
Here’s my plan, reactive and upon confirmation from Bitcoin:
If Bitcoin is over $64k and IBIT is holding with authority over $36 – $36.50s, then I will look to add to my long swing that I have currently with a hard stop on that add near the low of the day.
My first target would be a move in Bitcoin toward its all-time high, around $69k. Along the way, depending on the momentum in Bitcoin, I might look to scale out and sell up to a fifth of my position each ATR as the stock moves higher. Ultimately, however, the plan is to take a third off in the high, and after that, look to trail my stop using higher lows on the hourly timeframe while manually taking off ¼ of my position each higher high that it makes within its uptrend.
Breakout in ARM:
Semis continues to lead the sector, with ongoing rotation and breakouts occurring in several different stocks daily and weekly.
ARM has spent considerable time consolidating, with levels shining through across multiple timeframes. I also like that it is consolidating above the resistance of its previous mini-consolidation. This signals strength to me and that a breakout is likely increasing in probability.
*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 for ARM:
I am looking for ARM to push above Friday’s high and hold with authority and elevated RVOL. If that occurs, I will enter long with a stop below the day’s low. After that, If ARM pushes over $150, holds, and displays notable strength relative to the sector, I will double my position.
The first target here is a move toward $160, which might have some supply, and 1 ATR from the $150 add zone. After that, I will trail my stop using the 15-min chart higher low approach and look to manually scale out of the position as the stock makes considerable higher highs with that breakout uptrend, on the same timeframe. Once entered and confirmed, the expected holding period for this position would be around three days.
Multi-Year Consolidation Breakout in Small Caps / IWM
The IWM closed the week up 3%, near the high. Notably, that put the IWM ahead of the broader market (SPY) and the tech sector, which closed up close to 2%.
What’s interesting about that is that the IWM also closed the week above a multi-year consolidation breakout inflection point near the $205 zone. A breakout of this magnitude might have legs and serious momentum, so I am stalking this next week for entry.
*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:
If the IWM maintains its recent momentum and relative strength, I will enter long either on a higher low above $205 or a breakout above $206, with an initial wide stop of $203, below Friday’s low.
My first target would be a move toward $210 – $211, a notable area of interest and potential resistance on a higher timeframe. Into that level, I will look to exit a third of the position, up to a half of the position, depending on the price action. After that, I plan on holding this position for an extended period, potentially up to a month, targeting a move toward $225 – $235, a significant potential resistance zone. How will I trail the stop? I will trail a portion of the position using the hourly timeframe, higher lows, and the remainder using the rising 5-day SMA.