Huge Profits and Lasting Education with FTNT
Shares climbed ahead of earnings, filled the gap and we cashed in, then the drop.
We have enjoyed multiple great trades recently and there have been a lot of great lessons taught with each one.
MARA and PLTR both showed the power of bouncing off of anchored volume weighted average price (AVWAP).
CRSP broke out of consolidation and is powering higher (a favorite pick of mine for 2024).
VNOM has made new highs in the energy sector, even while the sector has not been impressive.
DKNG got above resistance at $40 and followed up with nearly another 10% of upside while the call options more than doubled!
Trading in 2024 has been off to a great start and I am excited for more!
If you want to make sure you don’t miss a trade, be sure to upgrade for only $8.00 and you will get every detail ahead of time.
Options contracts, entry levels, support and resistance, stop loss levels, and price targets are all included as well as bull and bear cases for each trade.
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Looking back at the FTNT trade, the thesis was based on a steady climb heading into earnings towards filling the gap above to 74.15.
The move started at $60 which means a more than 20% move since the start of the year.
And that is after the big reversal that came following the gap fill.
This highlights the importance of taking profits quickly.
Options contracts will give back gains in a blink on a reversal and gap fills are known to be followed by a reversal.
That said, the chart highlights another important trading consideration.
Notice the respect of the 9-day simple moving average (SMA). Even on the big red candle, the SMA was respected and shares continued higher.
This tells me there are still buyers and continued strength can be expected.
I like FTNT for more upside as long as it holds the 9-day SMA. Any dip and recovery is a buying opportunity.
This trade had a lot of great elements to it.
I like to trade the momentum build ahead of earnings, which we saw with FTNT as the candles started to separate from the trendline as they moved higher off of support near $60.00.
I like to trade a gap fill, which we got following a strong earnings report. But I am always ready to take quick profits on these gap fills as they tend to reverse.
The 9-day SMA was respected on the pull back, giving an entry opportunity as well as reason to hold onto your position if you were already in the trade.
These are great reminders and examples of why I like to review my past trades, good and bad.
Recently they have been very good (when I’m hot I’m hot!) but that doesn’t mean there is nothing to learn. There are always lessons!
Thank you again for your support of A Trader’s Education which is also off to a hot start! I could not do this without you.
Have a great day!
-Nate
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This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.