Most traders will be focused on any stimulus news and the POTUS’ and FLOTUS’ health come Monday morning.
While I am keeping an eye on the news for potential catalysts that may move the market…
There is one strategy I love to use because if there are negative market-wide catalysts, the chances of it dragging the specific stocks I’m looking at is low, in my opinion.
What specific stocks am I talking about?
I’ve uncovered three that I believe can make a move this week, and I want to show you why I want to keep them on my radar.
Enlivex Therapeutics (ENLV)
- ENLV is a clinical-stage biopharmaceutical company
- On Thursday, the company announced positive results from the clinical trial of its key drug Allocetra with significant improvements in COVID 19 patients.
- Shares shot up from $6 to $14.99 in the premarket session on Thursday, giving back some gains later in the day
- On Friday the stock started to show some strength again, closing at $10.35
On the daily chart, the pattern that popped up is the rest and retest. With the 50% Fibonacci retracement holding up well, I would look for potential entries on pullbacks and use either 38.2% or 50% retracement levels as stops.
The target would be highs around $11.50.
Next up, WWR
Westwater Resources (WWR):
- WWR explores and develops mineral resources essential to clean energy production. The company is involved in exploration of lithium, key component in lithium ion batteries
- Shares skyrocketed on Friday, up 49% on the day. The move came with the tailwind from the sector. Another lithium miner LAC closed up 17%
- Although there was no fresh catalyst in the stock, I believe the sector strength could continue the next week: a lot of shorts might be caught on the wrong side of the trade
- I would love to see this one open weak but hold a support level like $3.5 or $4 to lure some fresh shorts in. If the stock is able to hold and start perking up later in the day, I believe it could go parabolic. While I will need to see some confirmation first, I will watch this one closely next week
Cbak Energy Tech (CBAT)
- Another battery sector play, CBAT is a manufacturer of lithium-ion batteries for portable digital devices
- On Monday the company announced it developed a new battery technology that is expected to come into production in early 2021. According to the press release, the battery technology has technological advantages to Tesla batteries
- On Monday shares short up to premarket highs of $4.16. After a slight pullback, CBAT is on the move again with shares closing at $3.13
- With the tailwind from LAC and other alike, I believe CBAT could see a run higher next week. The most key areas of support are $2.5 and $3. If the stock is able to get above the pivot high of $3.45, I believe this one could go to $5
With volatility picking up, I believe many traders will start to turn to small-cap momentum stocks… and that demand can cause some wild moves.
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