The Weekly Trade Plan: Top Stock Ideas & In-Depth Execution Strategy – Week of October 7, 2024

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Merchants, I look ahead to sharing my prime concepts for the upcoming week, together with my exact entry and exit targets and explaining the precise setups and eventualities I’m in search of.

So, with out additional ado, let’s leap straight into it!

Starting with the most recent theme, Chinese language shares.

Now, I gained’t go over the background surrounding the transfer, be it macro or technical, as I already did so intimately in my newest Inside Entry assembly. As a substitute, I’ll define the place I see the chance going ahead and lay out my plans.

Imply Reversion A+ Alternative

The Thought: Firstly, I’m wanting on the most overbought Chinese language inventory, judging by its vary enlargement and RSI. It’s necessary to do not forget that these Chinese language shares are breaking out of multi-year bases, are actual corporations, and have immense tailwinds coming from Beijing’s measures. So, I’m not in search of a “crash” kind transfer—only a imply reversion alternative.

The Inventory in Focus: Resulting from vary, liquidity, and RSI, TIGR is the perfect inventory for a imply reversion alternative. Once more, it’s a actual firm right here with immense inflows and advantages from rotation into Chinese language shares. Nonetheless, with its RSI now within the mid-90s, it’s arrange virtually completely for a imply reversion commerce.

*Please word that the costs and different statistics on this web page are hypothetical, and don’t replicate the influence, if any, of sure market components reminiscent of liquidity, slippage and commissions.

The Plan: There are numerous eventualities and methods wherein this may play out. Every situation has completely different gradings, i.e., A+, A-, and even A++. As I mentioned at nice size in Inside Entry, it’s necessary to recreation plan every situation and description IF/THEN statements.

For instance, IF TIGR gaps up on Monday, additional stretching its RSI, has one final push off the open and quick rejection, THEN that’s A++, and I’ll look to be brief versus the HOD, explicitly concentrating on a decrease excessive entry and consolidation breakdown / VWAP breakdown for an add.

Or, if TIGR gaps up on Monday and provides the hole again within the pre-market, I’d downgrade the transfer to A—and look to brief a decrease excessive / failed pre-market excessive try. Ifthe inventory holds weak below VWAP, I’d improve its ranking to A+ and dimension accordingly. These are simply two potential eventualities. There are lots of extra, with completely different gradings and EV, which can influence my danger.

Different shares I shall be watching carefully, with the same plan, are FUTU and YINN.

Now, this theme will take up most, if not all, my consideration as a imply reversion alternative units up, adopted by loads of open-minded buying and selling alternatives after that.

So, with that being mentioned, listed below are simply two extra shares I’ve set alerts in.

Further Mentions:

ASTS Consolidation Breakout

The Thought and Plan: Much like my earlier plan within the title, the inventory has digested its upmove and stabilized nicely above its rising 5-day SMA. After Friday’s motion, it seems prepared for a momentum transfer greater.

I shall be in search of additional affirmation earlier than coming into lengthy for a swing. I need to see the inventory maintain above Friday’s excessive and its rising 50-day. If ASTS can spend time with RVOL, holding above that zone, I’ll look to enter with a LOD cease, concentrating on a transfer towards $30 as goal 1.

DUO Bottom Brief

The Thought and Plan: A number of choices had been introduced final week, and eventually, a personality change on Friday afternoon. I’m actually not seeking to chase weak point within the title. If it will possibly push again towards the $3.5 space of potential resistance, then I’d search for a brief, trailed in opposition to decrease highs, concentrating on a transfer towards $2.5 and $2.

BENF Failed Observe-Via Brief

The Thought and Plan: I’m retaining it easy after Friday’s failure. If the inventory pushes again towards $1.9 and fails, I’ll search for a brief scalp that targets $1.6 – $1.5. I gained’t watch the inventory. I’ll have alerts set, and in the event that they go off, I’ll pay nearer consideration to cost motion to react or disregard it.