Here are 7 objective, low-risk “Trades about to happen”. Each set up is either immediately or nearly actionable with triggers close by. For each trade idea, i will give you levels to alarm for entry, potential targets, and other key information to glean from the charts.
About my process
I sift through hundreds of stocks each day to find sets ups that offer objective, low-risk trade locations. At these locations, traders can put on positions with stops close by and know exactly when they’re wrong. If you honor your stops, your losses will be minimal on losers, while the winning trades will be much greater. Additionally its important to understand I am a technical trader. I do not consider fundamental factors for these set ups. If you incorporate fundamentals into your criteria, simply apply those considerations to the set ups / stocks of interest. When the fundamentals and technicals align, you should have a nice trade set up.
How to leverage these trade ideas
Not all the set-ups I provide will be appealing to you. For those you are interested in set alarms at either the level I suggest or at a level where you want to be given a “heads up” about the trade. Once your alarm triggers, you can re-focus on the stock and potential trade. Depending on your current portfolio positions, view of the market, and other factors you may or may not decide to take the trade. If an alarm triggers and you don’t take the trade, re-set your alarm at a new level where you’d want to take another look. In this way a stock won’t run away from you without you being aware.
$MDB – MongoDB – Daily
I love this trade location for both bulls and bears. Price is testing key support at $125 where both gap support and the 200ema converge. This should be an area where bulls step in to defend it, but if they don’t or the selling pressure is too much, there’s a $20 gap to fill below.
Trade Strategy:
Bulls: Get long against $125 and look for a bounce. Set a tight stop just below. If $125 breaks, immediately flip bearish and target $105
Bears: Be patient and wait for a break of $125. Set yourself an alarm there and be ready to hit it. Set your stop slightly above. Target $105
If the gap fill alarm triggers I like the idea of looking out at least 2 weeks and targeting either the $125 strike puts or the $120 strike. These wont be cheap but i also dont think price will wander around for 6 weeks inside the gap. I think that gap fill will be quick if $125 breaks.
$WAT – Waters Daily
The exact opposite of $MDB with a $20 gap fill opportunity to the upside. Price barely entered the gap yesterday, so if you want it, hit it now.
Trade Strategy: get long now and look out to October for a $220 / $230 call spread or straight $220 calls. Place a stop just below $220. Target = $240
$YUMC Yum China – Daily
Nice long-term ascending triangle pressing against OH resistance at $47. Although they are not shown, the RSI and PPO indicators are supportive of a further advance.
Trading Strategy: Alarm $47. If / when it triggers, get long
$TWTR Twitter – Daily
After Twitter broke out, price came in for a back test of the breakout level at $43 which it tagged yesterday. That is bullish action. I like it here as a long against $43
Trade Strategy: Nothing fancy. October $43 or $44 calls should get it done. If price drops much below $43 , kill the trade
$SPLK SPLUNK – Daily
Price found key support at the double bottom. Nice trade location if you like it long with a very objective line to shoot against at $107.50
Trade ideas:
Get long now against $107.50 if you like the name. Bears, alarm $107.50 to bring the name back into focus if the bounce fails. Get short on a break of $107.50 if / when it occurs.
$NOV – National Oilwell Varco Daily
Oil service names have been slaughtered over the past 18months. After breaking key support a while back, price has rallied to OH resistance. I am skeptical that this and other oil service names can sustain a durable rally. From a technical stand point, this is a typical location for price to fail. Additionally, you have the declining 200ema coming down as an additional resistance layer.
Trading Strategy: I dont think there is any big rush to put on this trade. Watch it for a few days. If it stalls or get rejected, I’d get some puts out in time and just let it fade away. What I like about this trade location is that you know exactly if you’re wrong. If price breaks above OH resistance by any appreciable amount, kill the trade
$XES Oil & Gas Services ETF – Daily
Like $NOV, price here has rallied up into the teeth of resistance. THere is over head resistance, downtrend resistance, and the declining 50ema to contend with. Love the trade location. A break above and price has some room to run. A rejection here and it is set up to resume its downward path.
Trade Strategy Watch closely. With a break above, get long calls out in time. If rejected, get short with puts out in time. The nice thing about the ETF is no earnings risk. Again I love this trade location. The outcome will be binary. Price either breaks out or it doesn’t and it will be clear as day for either one
Need More Trade Ideas?
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Notes:
The charts are and levels are provided as well-informed guidelines. That said, please be aware that exogenous events like surprise tariffs or other events can easily move price through support / resistance zones.
Also, set you stops according to your own risk tolerance. The ones I have provided are to be used only as a guide. The most important aspect of your stop is to honor them. Some trades work, some don’t. Honoring your stop will ensure your loss on a failed trade will be minimal.
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