HOOD +28%, Now CPNG is Ready to Rip

HOOD bounced off of its anchored VWAP, CPNG is about to do the same.

Every trader has a favorite indicator and set up. The one that seems to come through time and time again. The money maker.

I am no different and that indicator for me is Anchored Volume Weighted Average Price (AVWAP). The set up I like maybe more than any other is trading the bounce off of a well-respected AVWAP line.

Last week I pointed out HOOD was set to bounce off of its AVWAP from prior earnings. Take a look at that chart here…

HOOD daily candles revisiting AVWAP.

Now take a look at the price action this week. It was nothing short of spectacular and if you got in the call options (highlighted for upgraded subscribers) you absolutely crushed it.

What a move! The candles blasted through all three profit targets in just five trading days. That is over a 28% gain for shares of HOOD this past week and a ton more for the call options.

HOOD up 28% in a week of trading.

I hope you got in on the trade! If you took the 26 strike call options expiring December 20th you still have over a month to let things ride.

And if you haven’t already, I highly recommend taking profits along the way. That is what the profit targets are for!

I like to take 20-30% off at the first profit target, then another 30-40% at the next, and another 10-20% at the third. Moving the stop loss up along the way.

This typically allows me to leave a 10-20% runner for any wild moves for situations like we have with HOOD. Big profits and still a lot of time before expiration.

I will note that my weekends are always far more enjoyable after taking profits. Mondays are even more exciting when I leave a few runners to capture any additional upside.

Thank you, HOOD!

Now I am seeing a similar opportunity in a lesser-known name, CPNG.

I have really enjoyed trading this ticker, especially the options. They are liquid and the shares can make big moves in a short amount of time.

Check out how similar this set up is using the AVWAP from prior earnings for CPNG.

CPNG daily candles respecting AVWAP.

The relative strength index (RSI) for CPNG is just below the midpoint, which is also what we saw with HOOD prior to its bounce.

Note the respect of the AVWAP line in September and now again post earnings in early November.

I like the set up so I’ve outlined the trade I’m considering.

I’ve also added more profit target levels for HOOD.

Big thanks to all of you dedicated to the ATE newsletter!

There are so many lessons learned in the trading world. I like to mix the education with real trades I’m considering to give a real world look at the strategies I use.

Hopefully you’re finding it helpful!