I’ll be highlighting my top trading ideas, entry/exit targets, and strategies for some of the most promising setups. We’ll begin by reviewing the top idea from last week, Tesla (TSLA), and then look ahead to potential trades for the upcoming week, featuring stocks like MVST, DXYZ, PLTR, XLF, UAVS, and MTEM.
Tesla (TSLA)
Recap
Just last week, Tesla’s first red day setup fell right into my trading watchlist. The stock provided several chances throughout the week, particularly after the breakdown below critical support at $336. The pullback and reversion confirmed a possible exhaustion of the downside. On Friday, Tesla showed relative strength compared to the rest of the market, suggesting that a bottom possibly can form.
Plan
For this week, I’m eyeing a higher low confirmation, ideally a pullback on Monday or Tuesday toward the $309 area (Friday’s low), where I’ll look for a confirmation of the higher low. A successful reclaim of the VWAP and a break of the high of day will signal my entry for a long position.
- Target 1: $328 (previous support zone that may act as resistance)
- Target 2: $336 (previous breakdown region and resistance level)
MVST (Microvast, Inc.)
Recap
MVST had a standout performance on Wednesday, with impressive volume and range, trading over a billion shares. Although volume dropped off significantly in the following days, the stock managed to hold above critical support near $0.65. Given its strong post-breakout momentum, I’m looking for a potential liquidity event early next week.
Plan
I’ll be looking for evidence of a higher lift out of the pre-market action. When MVST runs on low volume and breaks above $1, I’ll be a buyer. I’ll buy at the low of day and stop there; it will be a breakout and liquidity could be a ramp higher. Or, if it consolidates from $0.90 to $1.00 after the market open and the relative strength is stronger, then it’s time to be a buyer again and look for the continuation move.
- Target: $1.20 to $1.50 if the breakout holds
DXYZ (XYZ Corp.)
Summary
DXYZ, after election euphoria, ran higher but broke its uptrend. The stock is now in a downtrend, and I’m watching for a potential re-test of resistance in the $37-$38 area. A push into this could provide a short setup.
Strategy
If DXYZ gets to $37 and can’t hold, I will look for a lower high to initiate my short position.
- Target 1: $30-$32 (nearest recent support areas)
- Target 2: $20-$22 (long-term support region)
PLTR / Palantir Technologies
Summary
I do think Palantir has been on an impressive run, but haven’t yet seen a clear signal to short. Of course, it’s still in an uptrend, but I’m going to keep it on my watchlist for any possible reversal patterns or signs of exhaustion. The stock hasn’t shown signs of a blow-off top or failed follow-through, which are what I’m waiting to act.
Plan
I will stay on top of the stock looking for any kind of setup that would suggest a potential top is forming. At that point, if I get any sort of reversal pattern, such as a failed push higher or large red day, I will position for a short.
- Trigger: High exhaustion or failed follow-through
- Target: TBD with the setup
XLF (Financial Select Sector SPDR Fund)
Summary
Financials have been very strong relative in the latter part of last week. With XLF at 52-week highs, I will monitor for any continuation or breakout.
Plan
When XLF breaks last week’s highs with momentum, I would take a long position using the day’s low as a stop, which could evolve into a swing trade in case the move extends.
- Target: Near the next resistance zone or 52-week high
UAVS (AgEagle Aerial Systems)
Plan
UAVS has had several strong moves, and I’m keeping an eye on it for a potential short-term rally. If the stock reaches resistance in the high $3s and fails to break higher, I’ll look for a lower high and a potential short setup.
- Short Entry: High $3s on a failure to break higher
- Target: Low $3s
MTEM (Molecular Templates)
Plan
Similar to UAVS, I’m watching MTEM for a potential short-term pop. If it pushes up and fails to hold key resistance, I’ll short it.
- Short Entry: Near resistance levels (if failure to break higher)
- Target: Low $5s if the move reverses
Conclusion
This week, the market offers opportunities across long and short settings through a variety of stocks. Names like Tesla, MVST, DXYZ, and UAVS are ideal for momentum-driven moves but may also be considered great for shorting on a failed breakout. Trading large caps versus small caps provides perfect opportunities to keep the setups moving with the market’s upside.
Remember, trading involves constant adaptation, and having alerts set up on a number of stocks makes me set to pull the trigger when opportunity knocks.