CPNG Bull Flag & Cheap WFC Options
Yesterday's trade ideas for OXY and AMD took off! Loading up two more.
The first two trade ideas for the week are off to a great start, breaking through resistance for an entry on day one.
If you got into the July call options you have nearly six weeks to work with, allowing OXY and/or AMD continue to rise.
As promised, ahead of my trips next week (very excited to ring the bell at the NYSE) I am pulling together multiple sets of trade ideas.
Today I found two more tickers that are set up for success.
First up is directly from the ATE Interesting Tickers watchlist. I am talking about CPNG which simply needs to break last week’s range to find direction.
After a powerful run from $19 to $28 the candles have cooled off and are consolidating between 27.75 and 28.61. I am watching for a clean break of either level.
The large spike in volume looks like institutional buying which is typically followed by additional purchases, holding shares up and allowing them to move higher.
I think that is what we get for CPNG.
The relative strength index (RSI) is holding in overbought territory and can stay there for a long while.
The 50-day simple moving average (SMA) has crossed above the 200-day SMA, known as the golden cross and a bullish signal for the near term.
The options contracts are also inexpensive. Prime for trading, which is what I intend to do.
The next ticker I am looking at is not as sexy as a name like HOOD or SOFI, but the options contracts are priced right, and the chart looks ready to break out.
I am talking about WFC.
The daily candles have peaked recently at 76.58 and after hours on Tuesday they spiked aggressively above this resistance level.
Watch for this level to hold and more upside to follow in the coming weeks. I am low key excited about this typically boring ticker starting to make waves.
Both of these trades have the markings of an ATE signature trade. Simplicity, options contracts that are priced well, and momentum.
Let’s get to the trading plans.
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