With a Shortened Trading Week Ahead, It is Essential to Have a Game Plan in Place, Thanksgiving will cut down on only three-and-a-half days of trading, quite a period when historical trends of major market moves have come along with outlier and Black Swan events.
While focusing on efficient trading in the market and minimizing exposure to risk, let’s have a look at some key items currently on this week’s trading watchlist.
Let’s analyze the key trading opportunities and strategies for this week.
1. Tesla TSLA – Multi-Day Swing Opportunity
Tesla remains the top trading idea now for several weeks in a row, showing resilience near the recent pivot high and 52-week high.
Market Setup
Tesla consolidated on contracting volume and range ahead of last Friday’s breakout with elevated relative volume. This could continue into the shortened week and present a very profitable swing trade.
Levels to Watch
Key levels:
- Support near the $350 area — previously resistance that became support.
- Resistance at $355 and $360.
Trading Plan
- Await the retest of the $350 zone for a rebound into Friday’s range.
- Long positions against the low of the day should be entered.
- Add to the position on a clean breakout above $355.
- Aim for $360 on partial exits while trailing stops with higher lows.
By targeting the multiple average true ranges, traders can profit from Tesla’s momentum-driven price action.
2. Upstart (UPST): Momentum Post-Earnings
Upstart is set up to continue higher after a strong earnings gap and multi-week consolidation phase.
Market Setup
With this development, buyers have set a new floor around $70 with strong short interest at close to 30%. Further momentum would require a breakout above the $74-$75 range.
Key Levels to Watch
- First resistance is between $74 and $75.
- Potential upside target at $80.
Trading Plan
- Ensure consolidation above $74-$75.
- Enter long positions on confirmation of breakout with increased volumes.
- Trail stops after an ATR move to $80 scaling out at higher highs.
This is a strategy leveraging the stock’s short interest and technical setup for a possible rally.
3. Bitcoin-Related Stocks: Keeping an Eye on the $100K Catalyst
Bitcoin approaches the psychological $100K milestone, setting up a number of scenarios for related equities like IBIT, MARA, and MSTR.
Possible Scenarios
- A clean breakout above $100K might lead to a further rally.
- A failed breakout could also result in sharp corrections.
Key Trading Ideas
- IBIT and MARA: React to Bitcoin’s price movements.
- MSTR (MicroStrategy):
- Close short positions around the $450-$460 resistance zone in case of Bitcoin’s failure at $100K.
- Cover shorts around $420 or $400 in case the downtrend extends.
Reactivity to the key levels of Bitcoin will be important to execute profitable trades.
4. Small Caps and Sector-Specific Plays
Among small-cap stocks and certain sectors, the following stand out for this week:
Uranium Stocks
- Names to Watch: UUUU, DNN, UEC.
- Setup: Breakout higher possible as these stocks form bullish patterns.
Quantum Computing-Related Stocks
- Names to Watch: INQ, QBT, QUBT.
- Setup: Waiting for exhaustion to set up for mean reversion. QBT seems closest to extension but not ready yet.
Traders should also continue to keep a watch on these stocks to see further development prior to finalizing detailed plans.
Tips for Trading in a Shortened Week
- Stay Flexible: History shows this week often sees unexpected moves, especially in small caps. Keep an open mind and avoid overcommitting to any bias.
- Prioritize Risk Management: Lower liquidity equates to wilder price swings. Make sure stop-losses are clearly defined.
- Watch Volume Trends: Confirmations on breakout or breakdown moves rely a lot on volume, particularly in this diminished trading environment.
The Approach of ABC Capital to Trading Success
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What ABC Capital Offers
- Opportunities for in-house or remote trading using firms’ capital.
- Broad training programs aimed at the development of a profitable trader.
- A culture of ambition, determination, and excellence.
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Conclusion: Get Ready for a High-Impact Week
This week’s trading watchlist details prospects across higher and lower scenarios in various sectors. Be it Tesla’s momentum, continuation of earnings in Upstart, or the $100,000 catalyst for Bitcoin, the foundation of successful trading involves preparation and discipline.