Happy Sunday, Traders
I’m excited to share several new ideas with you today, all of which could have significant directional moves.
But before we get into those exciting new ideas, I wanted to share a trade I took last week with you because there is much to learn from it.
You’ll remember that a long breakout in Tesla was one of my ideas last week and is actually on my list again this week. While that idea gained momentum during the last two days of the week, and I made money on the long, I also went short the stock on Wednesday and profited.
Here’s the lesson I wanted to share with you: As I mentioned last week, the long idea was crowded, making me hesitate for a long working out seamlessly. However, I kept it on my list because I liked it from a technical point of view.
But, by remaining open-minded and flexible, I could use the information gathered from the breakout idea, specifically, the idea not triggering and trapping eager/early longs, key levels, potential stop zones, and areas of quick intraday influxes of supply to go short for a momentum scalp.
Here’s the trade:
*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, I had a plan for a long in Tesla; however, it did not trigger. Therefore, I did not go long. Instead, I went short when I recognized longs who did not wait for confirmation were stuck, and support was about to giveaway, providing an excellent opportunity for a momentum short.
The following day, I did a similar trade to the long side in Tesla, which is now set up even better than the prior week for a swing long.
So, onto the fresh ideas for the week.
My Main Swing Idea: Momentum Long in Tesla
After a quick move lower, below crucial support, running stops, and shaking the tree, Tesla has now reclaimed key moving averages and held above the consolidation’s resistance.
*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, from a failed move lower comes a fast move higher? Let’s see…
I plan to look for dips, higher lows, and steady support over $250 for a long entry, with a stop placed below Friday’s low. I’m targeting a move toward $260 to take risk off and lock in profits, and then discretionarily leaving on a third for a lofty target of $270 while trailing my stop using an hourly timeframe and higher lows.
Backburner Ideas: Alerts Set for Potential Directional Moves
*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.
UPST put in an impressive inside day on Friday, potentially setting up for a breakout. Alerts are set for a breakout above Friday’s high and potential continuation toward $50.
*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.
CCCC saw an exceptional volume and price surge last week on the potentially fundamentally changing news. However, In the short-term, it appears to be on the backside, and therefore, alerts are set for pops back into potential supply/failure levels, such as $5.50 – $6, to eye for failure and an intraday short-swing setup.
Lastly, MSS and GDHG were the latest pumps to be liquidated. Both were great opportunities last week. They are dropping like flies lately. Therefore, I have volume and price alerts set for some of the last ones standing: EJH and ZJYL.
The post The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of December 18, 2023 appeared first on SMB Training Blog.
