It was Friday. And I took a commerce going into the shut.
It was a easy setup, a dip purchase off the highs that I offered after-hours for a pleasant single.
However the inventory additionally had all the fitting components for a weekend commerce.
So, I really took two positions.
A couple of college students requested why I took the commerce within the first place.
Others wished to know why I didn’t promote when it dipped after-hours.
So, I need to go over my weekend commerce as a result of the setup is one among my favorites.
The truth is, my first-ever six-figure commerce was on a weekend play.
I haven’t traded with that type of dimension in years.
Lately, I commerce with a small account as a result of I educate college students with small accounts.
And this commerce didn’t find yourself being an enormous win.
In the long run, despite the fact that it gapped up, it couldn’t maintain its positive factors.
So, I acquired out for a tiny win (roughly break even).
However the recipe is identical and the components have been there.
Once more, this one had the whole lot going for it, so take notes (and bookmark this).
It’s NOT the primary time we’ve seen this setup (and it WON’T be the final time).
Test it out…
The Recipe for Weekend Commerce Success
Atomera Included (ATOM) had a transparent multi-day, multi-week breakout on Friday.
Right here’s the 3-month chart…
Supply: StocksToTrade
ATOM 3-month, each day candle, multi-week breakout.
The transfer again in February went from the $2s to the $7s.
That makes ATOM a latest supernova (at all times price watching).
Friday was a primary inexperienced day. And despite the fact that it was uneven, it had key help round $8.40…
Supply: StocksToTrade
ATOM 4/24/26 intraday, 1-min candle, key help stage.
Nonetheless, some college students requested why I purchased it 5 minutes from the shut when it was off its highs.
How To Choose a Weekend Commerce Setup
This may appear unusual if you happen to’re new, however this commerce (and any weekend setup) can’t be judged by how a lot you gained or misplaced.
Why?
As a result of typically you’re going to lose. That’s buying and selling.
The easiest way to guage the setup relies on risk-to-reward.
In different phrases, did the commerce have sufficient going for it to get in and maintain over the weekend?
ATOM had each ingredient…
• Sector Momentum. Acknowledge that chip corporations are scorching. Whether or not it’s Intel Company (INTC) spiking 25% on Friday, or Superior Micro Units Inc. (AMD) … Or some other chip inventory. It’s a extremely popular sector.
• A Information Catalyst. The corporate introduced an expanded collaboration with Synopsys Inc. (SNPS), which is a a lot greater firm within the semiconductor trade.
• A Breakout. Once more, it was a multi-day, multi-week breakout.
• Holding Positive aspects Going Into the Shut. Sure, it was off the excessive of the day, however nonetheless largely holding. Particularly at that key help stage.
I used to be capable of purchase simply above the important thing help at $8.40ish.
Although I didn’t get out proper when premarket buying and selling opened (which might have given me a giant win), the setup was lovely.
And since I knew the important thing ranges, as a result of, frankly, my weekend technique is nice…
As a result of the information was already out…
And since it was a strong threat/reward given the drop off the highs with help just under my entry.
This can be a lovely commerce.
Key Takeaways from ATOM
A number of college students requested (even after the commerce) how I throw out the numbers and evaluation on a inventory like ATOM.
There are three issues to recollect:
1. I have a look at fundamental help and resistance. A help stage is a worth a inventory tends to remain above. A resistance stage is mainly the other. It’s a traditionally excessive stage for a inventory … a worth that the inventory had hassle breaking by way of previously.
2. I’m mainly a glorified historical past instructor. Research previous charts. Except you might be model new, you must know this. And if you happen to ARE model new… now you recognize. ATOM is a former supernova a number of instances over. I’ve been watching and buying and selling this inventory since late 2020.
3. Research HARD! This isn’t rocket science. You’ll be able to study most of what it’s worthwhile to know in a number of years. However you MUST research onerous. Each. Single. Day
When you’ve got any questions, electronic mail me at [email protected].
Cheers,
Tim Sykes
Editor, Tim Sykes Every day
