01/21/2022
Well… the market sure is a lot of fun for the bulls right now.
(If you sense sarcasm, you’re right.)
But this is a good time to look at long positions you may have missed out on or plan your longer term strategy.
I’m talking big picture…
Last year, alternative energy was all the rage and the excitement got the best of many as most — if not all — of those names have come full circle and are sitting at their original starting points…
And then there are those that no one paid attention to.
This is a sub-sector that’s just getting started…
I believe there are a few international names that are being slept on and have traded well with today’s pick being one of them.
At the same time, if you’re looking for short term swings with a wide range for profitability, this also fits the bill.
This is Freyr Battery (FREY):
The de-SPAC phase appears to be over, so I’ve cut out the flatlined pricing prior to merger. As usual, we’ve got eyes on the daily chart…
Freyr Battery is a battery storage company founded in 2017 and headquartered in Norway.
(That’s one of the countries where the alphabet has the radical looking “ø.”)
Speculative play? Sure. But I’d dig deeper into their overall progress as a company.
The chart, at least, is definitely tradeable…
This is an EASY chart… just volatile.
Now, I say it’s “easy” because it’s tradeable based on the range and use of trendlines to time entries and exits…
I’ve drawn two lines of support that serve as buy zones, the white and gray dashed lines.
Using the trendlines in combination with the Volume Profile to the right will show you the area of value (“lit” portion of the Volume Profile).
Notice that the previous drop to ~$8.50 was met with a sharp increase upward despite faking out investors with a close at the low…
…this is close to the bottom of that area and follows the lower trendline.
Entering at the higher trendline has potential, although it’s risky in this market, meaning that scaling in with a small position here is the safest bet — if you’re eager to take an entry…
I’ve also noted with the white arrow where the share price has struggled with the 200sma, although it’s at least moving in the right direction.
But look at the lower chart — MACD is looking to cross over, RSI is gaining strength, and overall volume is highly suspicious…
Patience will be required here.
Oh… They also have warrants if you’re looking for a multiplier effect.
(Disclosure: I have no position in FREY/FREYWS, but intend to initiate a position in the next 30 days.)
Keep moving,
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
