Traders,
I hope you all had a wonderful long weekend!
As always, I look forward to sharing some of my top big-picture ideas with you as we head into the new week.
So, let’s get right into it:
Consolidation Breakout OUST: As I went over in my recent IA meeting, OUST has done a terrific job of digesting its prior momentum, shaking the tree, and rebuilding a base to go off of. This goes back to what I have said many times. There’s no need to rush in. Zoom out and let the chart re-form. Allow the key SMAs to catch up to price, to coil, and to align with the base and price action.
Now, after several weeks, a potentially new bull base is being built. If I am going to initiate a swing long, I would like to see OUST comfortably hold above Thursday’s high. That would be enough to get me to enter with a starter. To add size, I’d of course want relative strength and volume in the name, but I’d also want to see OUST clear the 49 level with conviction. If that occurs, I will be full-size for this setup, with a stop at LOD initially.
*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.
Bounce Trade in RKLB: As capital flocked to SPCX, along with attention, many peers in the sector experienced major profit-taking and selloffs. Over the past week, RKLB has done a great job of digesting the recent downmove and is now tightly coiled near its 50-, 10-, and 5-day moving averages, while holding firm above the key $100 level of support. To get long for a potential multi-day bounce, I want to see RKLB flip to display some relative strength. Specifically, I want to get long if RKLB can reclaim $110 and spend some time holding convincingly above the key level and its intraday VWAP.
*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.
Consolidation Breakout KEEL: From a technical perspective, I’m struggling to find a more bullish-looking chart in the short term. It’s as straightforward as it gets, in terms of consolidating for multiple weeks near its short-term resistance and pivot-high… while also aligning with the prior year’s high, near $6.6. I’ll look to get long KEEL if it takes out 6.40s, which would likely be a momentum long entry against the LOD. If it holds and continues, I’d add more size through 6.6, the 52-week high. On any significant extensions above its intraday VWAP, I’d piece out some, while trailing for a potential multi-day/week move.
*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.
Additional Names on Watch:
MRVL: Afternoon imbalance took the steam out of the breakout. Watching to see if this can reclaim and build above 320 for another shot at a higher timeframe breakout and multi-day swing long opp.
*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.
SPCX: After Friday’s late-day reversal, watching to see if dips get soaked near 178 – 172 for a long.
*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.
APLD: Keeping this on watch with alerts set in case it takes out last week’s high, setting up a breakout long trade opportunity.
*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.
ICCM: Didn’t really go away on Thursday following Wednesday’s move and offering. Alerts set in case it reclaims 7-8 and sets up a liquidity-trap squeeze.
*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.