Another Round of Setups!
Trading Valhalla
Introduction
Dear Trader,
What a month it has been so far a lot of impressive breakouts. For example, IONQ which we discussed 10 days ago is up close to 40% since then. Let’s be clear, not all setups play out as one would expect. As a matter of fact, most of them don’t, but this month has seen quite a decent amount of solid setups
This is the second post today after a post, which focused a bit more on macro and oil, you can read it by clicking HERE.
NPWR: Powering Up the Momentum
NPWR, which has a patent on a potential revolutionary near zero-emission technology for natural gas, has been capturing the attention of traders since the middle of October. The stock increased almost 50% in just over a week. Afterwards we saw consolidation for around 2 weeks afterward the company soared again after its earnings report on the 11th of November, again another 60% increase in just 2 days. Now we are in a new consolidation period and the stock is now forming an excellent high tight flag (HTF), which could break out to the upside this week.
Keep in mind that momentum trading requires solid risk management, but I assume that you already know this. That said, as I mentioned last time, with volatility comes opportunity
MSTR: Leveraged Bitcoin
MicroStrategy (MSTR), the former business intelligence firm, now more known as a Bitcoin proxy. With Bitcoin very close to all-time highs and Michael Saylor not being afraid to further issue convertible bonds on MicroStrategy to further expands it Bitcoin holdings.
Of course, the recent momentum caused the stock to absolutely soar. The company’s enormous crypto holdings—currently worth over $32.4B—make it a proxy for Bitcoin trading. Nonetheless, if you buy MSTR stock you are paying quite a premium for its Bitcoin holdings, with the company currently being valued at $94.8B.
But, the stock has insane momentum and can provide both good and short opportunities for traders. The stock decreased over 16% on Thrusday, with the stock being up over 350% in less than 3 months.
The stock recently reached an ATH at $543. For traders betting on Bitcoin momentum, MSTR remains an excellent momentum trade. It has perfectly followed the 10D EMA and might make an excellent long with a new 10D EMA touch, but ideally a break above a the current ATH could provide a great entry.
SOFI: Building a Fintech Fortress
SOFI, a fintech disruptor with roots in student loans and personal finance, has been steadily climbing the charts. Its latest earnings revealed total revenue for Q3 2024 at $689M.
Similar to MicroStrategy the stock is following its 10D EMA quite well. Waiting for some consolidation and then a new break higher could be an excellent trade.
Closing Words
Thank you so much for reading this article! I'm excited to share that the discord channel is now live, I’ll regularly share insights and trading ideas in there as well as I screen the markets.
It'll be a space where I can easily drop my charts and notes, and, even better, where we can have real-time, interactive discussions with each other. It’s all about building a space for open exchange and collaboration, so if you're interested this could be a great resource for everyone involved and of course, it will be FREE of charge. Even if you are an established trader already it is always good to bounce ideas. You can find the invitation link by clicking HERE
In addition, I might release another article tomorrow if I find the time as there are so many solid setups right now. Make sure you subscribe for that one! If not, there will definitely be some charts in the discord ;)
I would appreciate it if you could share this article so we can reach as much people as possible and help each other grow.
Last but not least, I would like to recommend checking out F4VS’ Substack. He provides some great value in the trading space as well.
In the meantime, get ready for another exciting week!