This week, I bring you my best trading ideas that I feel have the potential to make significant directional moves. I will share with you my actionable trade plans including entry and exit targets and take you through my thought process.
But first, let me think about the last week. Strong idea follow-through on several ideas were seen, Nidia’s particularly was remarkable breakout- one of those opportunities of a year. On the same wavelength, Microsoft came out as last week’s biggest breakout, whose development was seen to be without any hitch or glitch. There are some sample trades that one can go over to understand developments in my head.
With such a successful week, caution comes as the top priority. It is easy to get aggressive when results start coming your way, but maintaining tight risk management, good entry and exit, is much more important than trying to force trades. Instead of looking for large wins in the wake of a great week, I am going to stay disciplined and follow the price action as it materializes. It is not my job to challenge the market, but to respect it.
As I view the market this week, nothing is really getting me all excited about opportunities, at least not to the same degree as with Nidia last week. For this week, I keep my guard up and make adjustments as new opportunities emerge. Here is how I plan my game for next week.
How to Capitalize on Bitcoin-Related Stocks
1. Mara (Bitcoin-related stocks)
Relief Rally and Bounce Trade
Plan:
I’ll be watching for a potential relief rally in Mara, one of the Bitcoin-related stocks that has recently faced selling pressure. I’m preparing for a scenario where Mara finds support after a flush lower or if it reclaims VWAP. I’ll look for higher lows and an uptick in Bitcoin to confirm the rally.
Entry:
I’ll enter if Mara shows strength after a washout of 1-2 points off the open and a snapback. The entry will be confirmed by Mara holding above VWAP or showing higher lows.
Target:
My target for this trade will be 1 ATR (Average True Range), with a tight stop placed at the low of the day or below the higher low, depending on confirmation.
Focus:
The main focus will be on Bitcoin-related stocks, but keeping selective while avoiding the chase of any setups without confirmation.
2. CRGE – This is a small-cap stock.
Strategy: Potential Short Opportunity
Plan:
CRGE is a small-cap stock that faded off its highs into the close. This signals there might be significant overhead supply. I’m setting alerts to track any upward price action, especially if it pushes back into the 28-30 cent range. If the supply is confirmed, I’ll look to short.
Entry:
I’ll enter short if price confirms that supply is dominant, with a tight stop above the high of the day. My target will be the after-hour lows or similar levels of support.
Focus:
This is not a primary focus for the week, but it’s one to monitor closely for any potential price action that meets my criteria.
3. PayPal (PYPL)
Strategy: Monitoring for Breakout
Plan:
PayPal is currently forming an inverted head and shoulders pattern. I’m watching this setup to see if it breaks out above the 62-64 zone, which could signal a longer-term move. I’m not actively looking to trade it this week, but I’ll be ready if the breakout materializes in the coming days.
Entry:
Not much to report for this week, but it’s on watch for any progression that might unfold into a higher-level move.
4. AFRM (Airm)
Strategy: Breakdown and Momentum Move
Airm has consolidated and could fall further if below Friday’s low. If below and the stock weakens, it’s a candidate for a lower-high entry.
Entry:
I’ll look to enter on a lower-high setup, with a tight stop above the lower high. If the setup confirms, I’ll target a move towards the 38 level, with a potential move to 30 if the weakness continues.
Focus:
While Bitcoin-related stocks are the main focus, Airm presents a potential opportunity if it breaks lower and confirms weakness.