fbpx

 

It’s a holiday shortened week, and since the pandemic has a tight grip on some cases…

This trading week will be different than the previous Thanksgiving weeks.

We may see some wild action until Wednesday, rather than slow paced like we’ve seen in the past…

Then come Friday, with the early close, I wouldn’t be surprised if some small-cap stocks take off. 

You see, a lot of folks won’t be traveling for Thanksgiving and that means many traders may be at their desks on the hunt for opportunities. I really don’t blame them because there’s money to be made…

Especially in small-cap stocks. 

I mean you’ve seen the crazy moves that happen everyday, I don’t think people will be off their desks. Heck, even if they are… they can just pull up their phones to throw down some trades.

That said, let me show you which stocks I’ve uncovered to potentially trade and why they might run higher this week.

Three Small Cap Stocks To Watch This Week

I’m going to keep it short and simple this week. I want to give you a real taste of how traders actually develop watchlists.

For me, it’s not a dozen pages for a few names. I need to consume information as fast as possible and make a decision.

The easiest way for me is to just list short and concise bullet points.

CPS Technologies (CPSH):

  • The company manufactures and markets metal matrix composites
  • The stock had multiple runs this year, as they announced new orders for their hermetic packages and upbeat earnings. 
  • Its latest pop in July took it from $1.50 to $3.35 in a matter of 2 weeks. CPSH has slided lower since, but has had a notable bid on Friday moving from below $2 on open to over $3 in the after hours.
  • Key level is $2.40 – any hold above that is bullish for a retest of $3 area and a breakout higher

Orbital Energy Group (OEG):

  • OEG is a diversified energy infrastructure services company
  • The previously dead stock tripled in September as 3 insiders reported a combined purchase of 55,000 shares.
  • It’s pulled back since but has been consolidating firmly in $0.75 area and had a bid every day since Wednesday
  • Key support level is $0.93 and $1 – if the stock holds and consolidates higher it looks primed for a move to new highs above $1.3

China Recycling Energy (CREG):

  • The company is an industrial waste-to-energy solutions provider
  • Stock is a notable mover with multiple pops this year, but it always faced significant pressure in $4 and $4.80 areas
  • The name got moving again late Friday – for once it closed about $4 and held above $5 in the extended session
  • Any consolidation above $4.8 is bullish for a retest of next resistance in $7 area.

Listen, there’s a lot of opportunities in the market right now.

I want to show you how I uncover high-conviction trade ideas every single morning. It’s the one skill I believe all traders should learn how to do.

If you’re serious about getting a one up on the market, you’ll watch this exclusive training video here.

 

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

 

It’s going to be a holiday-shortened week, and typically, around this time — the volume slows down as traders spend time with their families.

Given the whole pandemic situation, this year might be a little different. 

That’s why it’s business as usual for me up until Wednesday, and I’ll most likely take it easy on Friday due to the early close. 

This week, I was able to lock in about a 50% win on TSLA options because I spotted — what I believe to be — a simple setup, as well as a key level.*

That said, I believe it’s important to identify reliable patterns and areas of value ahead of time. 

Let me show you which patterns I see in some of my favorite stocks, and which levels I believe traders should focus on.

Key Price Levels To Watch In Some Of My Favorite Tech Stocks

Let’s take a look at Tesla Inc. (TSLA).

Notice how the stock exploded this week after it was announced it was going to be added to the S&P 500 Index. Now, I figured the stock would test the $500 the other day, and right now…

It looks as if there’s a double top. I want to continue to keep an eye on TSLA around this level. Given this pattern, I wouldn’t be surprised if the stock pulls back a little and tries to find support somewhere.

One key level to focus on for potential support if TSLA does pullback is where it broke out from that ascending triangle pattern (the $450 – $460 range).

Next up, we’ve got Alibaba Inc. (BABA).

BABA actually was pretty close to oversold territory, based on the RSI. Now, BABA actually held support right around a key area and bounced.

If you look closely, you’ll see the fish hook pattern there. 

With this play, I may look to the bull puts to potential play for a run higher, especially if it starts to break above key exponential moving averages (EMAs) on my radar.

Last, but not least…

We’ve got Apple Inc. (AAPL).

AAPL has been consolidating around this $115 – $120 area and there’s a symmetrical triangle pattern here. The stock actually looks as if it can break above that trend line, so I want to keep an eye on this area because that means I can potentially use bull puts to take advantage of a move higher.

Want To Trade With A Defined Edge?

In this market environment, I’ve found understanding price action is key. That’s why I put together this important training session to teach you two patterns I love to use every day.

By identifying my scalable and reliable patterns, I can trade with a defined edge and uncover momentum trading opportunities before they take off.

Let me teach you how my patterns work, and why I believe they can help make you a better trader.

 

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

At one point this week, Naked Brand Group (NAKD) was one of the hottest stocks…

It moved from just $0.09 to $0.33 at one point on Thursday…*

 

 

Now, I actually sent an alert about this play and let Monday Movers subscribers know about this setup. It just so happened to be a bonus trade idea.

Today, I want to walk you through this trade and show you the pattern I used to spot it…

As well as one trend I’ve uncovered in small-caps.

How I Uncovered A Monster Move In NAKD

 

Here’s what I sent out at 8:41 AM ET on Wednesday.

I’m watching NAKD this morning. Firstly, this is what I refer to as a ‘bankrupt chart’ even if the company isn’t in proceedings. That said, I’ll trade charts like this for short periods of time when I deem appropriate. 

Volume spiked on this one Tuesday and Wednesday morning it’s back at it again with over $1,000,000 in liquidity as I type. So here’s the trade idea. In play above $.09, with a goal of $.16 if this works. 

If I do get an entry here it’s likely a day trade or gap play and that’s it. Again, the overall chart is about as ugly as it gets, but the last 2-days are the setup I look for to trade short-term momentum. If the volume dries up I move on from these, it is not a good company but could be a good trade. 

 

 

Notice how the stock actually found support and held, then started to pop on volume?

Well, that’s the one signal I look for and technically, this is known as the fish hook pattern for me.

Basically, I want to look for beaten-down stocks that found support and started to catch a bounce. Now, these plays are a bit risky, so I want to be nimble and get in and out (it can be a few days or minutes).

The key for me is to identify areas of value.

For NAKD, I liked above $0.09 as an entry, and $0.16 as the target. So risk-reward here, it was attractive. If the stock broke below $0.08, that meant the pattern was broken.

Now, NAKD actually got to the price I thought it would the day after I mentioned it.

 

 

Listen, there are plenty of opportunities out there such as the one you’ve seen above.

I’ve noticed a trend of beaten-down small-cap, low-float stocks exploding higher for brief periods.

If you want to learn how to uncover these plays, then you’ll want to attend my exclusive chart patterns training workshop.

You’ll discover my number one edge in the market, and two patterns I believe can make you a better trader not only in this environment but nearly any market environment.

 

Author: Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.