06/16/2022
Did yesterday’s pump fake you out?
Investors are waking up to a gap down in the SPY as international banks raise rates, Tunisia’s biggest union took a walk, and oil barely blinked.
You can’t let your guard down…
Remember what happened in ’94 when James Toney fought Roy Jones Jr.?
(Source: gfycat.com)
What a setup…
But today, I want to go into what I’ve been looking at in terms of setups with a stock that I’m looking at scaling into.
Let’s look at the chart on Quanergy Systems, Inc. (QNGY):
Above is the 65-minute chart and one of my main go-to’s for intraday trading.
It’s an odd time interval, but I like it because I get better signals… something Chris Hood pointed out to me months ago.
Like I’ve stated in the past, I’ll start on the daily and zoom in, although I spend a great deal of time with this particular time frame. Right now, I’m looking for bottoms.
QNGY is sitting in a potential Support channel at the moment and Resistance is far above it at $1.20+.
I say “potential” because the Support channel is still gray. It’s only when it turns green that we have confirmation, so I’m watching for a Double Bottom pattern…
Chris Hood’s Squeeze Trading Tool 1.2A is the latest version and I’ve gotten a number of buy signals as you can see on the actual bar chart.
These are clues…
If you look closely on the histogram, we’ve got an increasingly bullish histogram which I’ve marked with a curved arrow.
The Stochastic line on the tool also printed a green dot. This tells me that there’s a potential shift coming…
The green bars on the Vix Fix tool also show the increased volatility to the downside. You want to be careful when these pick up.
As for why I’m looking at a potential entry, the overall trend has been tight on the way down until recently when I started receiving signals with an expansion in the price action (note the blue arrows versus the white arrows).
More importantly, the Relative Volume has increased (yellow arrow).
You need volume in this market.
This setup is similar to what I saw in VIVK and ACOR which I sold earlier.
I like it at these levels for a starter position, although I won’t size in until I see a break above the 21ema (neon green crossline)…
The rest is management.
(Disclosure: I hold no position in QNGY but intend to initiate a position in the next 30 days.)
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.
