You Want to be in These Trades Early!
Trade ideas for SMCI and CPNG.
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We have a number of trade ideas setting up nicely. You love to see it.
When this happens it is important to remember to only take on what you can manage. Overextending yourself is one of the ways to quickly blow up an account.
Sometimes you have to skip a trade, even when they are as tempting as the two I am considering this week.
The first ticker we are highlighting for a trade idea this week is SMCI.
This chart is giving off signs that it is ready to make another big move higher.
Above both the 5-day and 50-day simple moving averages (SMA), both the very near term and intermediate term momentum is going in the right direction.
The relative strength index (RSI) is above 50 and creeping steadily higher as the candles found some footing.
There is only a little bit of volume remaining above the current price level and then it is off to the races. I like the potential for a BIG move and that is how I’m trading this one.
Next up is a familar ticker and one that has treated me well, CPNG.
One of my favorite tools found on TrendSpider is the anchored volume weighted average price (AVWAP). This price line allows you to anchor it to any candle you want.
Here you can see AVWAP anchored to the February 2024 low for CPNG, and the candles have respected the line.
I will be taking profits quickly if I get a chance to buy calls, leaving the rest of the position to run higher.
If markets decide to rip higher, these trades will likely outperform all of the previous combined.
Well, except for PLTR. And maybe RKT (we have until June!).
Details on which options I’m considering, entry levels, stop loss levels, and profit targets are outlined below.
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