Happy Saturday Traders
I hope you all have a wonderful, restful weekend.
Today, I will present several new ideas, all of which have the potential to make significant directional moves. As always, I will share with you my thought process and feasible trading plans.
Last week my plans and watchlist had the money and played well. You’ll notice, however, that even though the ideas went according to plan, some took longer to play out than others and adjustments had to be made regarding the schedule. There is an important lesson: trade stocks based on their price action and how they trade, not how you want them to trade.
Now, let’s jump right into some fresh ideas for next week.
This week is arguably the most important earnings week of the season, with several of the most valuable companies reporting, including Amazon, Apple, Microsoft and Alphabet. So of course my mindset will shift to in-game, intra-day trades versus bigger-picture market fluctuations.
However, when it comes to swing trading, I like several individual setups.
Falling Wedge on Coinbase
I am looking for a similar move we got in MARA last week in COIN for next week. I certainly think there are better vehicles to trade alongside Bitcoin than COIN, although now that Bitcoin has bottomed out in the short term, I’m looking for some relief here and like the R:R 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 fees.
Here is my plan:
Considering that the stock may need additional time to settle, I am looking for a break above the $128 – $130 range with conviction. I want to see the stock move above the previous day’s high / $130 area and hold convincingly. At that point, I will go long with a stop set around $125 – support from Friday and what will become the 2-day VWAP on Monday. Simply put – my stance would be there as I wouldn’t want to see it fall back into the area after the breakout.
I see $137 – $140 as a potential resistance zone on a higher time frame, so that will be my first target area to take off most of my position size. I will likely follow my stop using previous higher lows on the 30 minute chart, with a target of $145.
Shorting bursts in PHUN
This was on the list last week. It offered a great entry after breaking the uptrend and confirming a lower high/double top on Wednesday. However, the stock has managed to hold up well on a daily basis.
*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 fees.
Last week, I wanted a push higher to flush out some stubborn short swings, and this may have been the case. Going forward, I’m now looking for a push to $0.40+ and fail to re-enter short, then patiently hold my position for a slow fade back to reality below $0.20. Such a move could be the final trap for the bulls before it slowly fades. If the price is confirmed and I get my desired participation, I will try to be patient with it, with a waiting time of up to or slightly longer than a week.
An additional idea / side watch
An additional, very conditional Idea for which I have set alerts:
Solid multi-day replay on DWACthe name that led to the charge for PHUN, before settling on the event/catalyst that was the New Hampshire primary 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 fees.
Now that it has broken out in the short term, barring an additional catalyst or significant short squeeze, I would be interested in shorting a failed move higher towards $42 – $45 and lower confirmation for a 2 – 3 day fade back to $30.
I will only take it out if it is confirmed intraday and provides excellent risk reward and an accurate level against risk. If the stock moves up and consolidates above $45 – $50, I will no longer be interested in a small opportunity.
Additionally, if the stock continues to consolidate and form a bearish multi-day wedge, I might look for momentum sharply in a breakdown for an intraday position versus a swing position.
Important Disclosures
