06/17/2022
Early on in my trading career, I — like many other traders — developed a tendency to make a common mistake.
I’d put on a trade…
I’d take profits…
…and I’d never look back.
(Source: tenor.com)
But sure enough, I’d watch that same exact stock skyrocket a day or two later…
I learned my lesson and now, I keep an eye on every profitable trade to watch for another leg up.
For today’s edition of Before the Bell, I want to talk about one that I took profits on yesterday.
Here’s Vivakor, Inc. (VIVK):
This is the 15-minute chart.
It’s a shorter time frame, but it needs to be when you’re looking at a nail-and-bail type of market.
More importantly, you can key in with more precision…
VIVK is a lower float small cap which is my usual style of trading.
After yesterday’s run, there’s no true Support channel other than the thin green band that I’ve marked with the white up-arrows.
$2.25.
Notice how it has yet to fall below it since the breakout?
Well, if you see it, so do short sellers… And they’re more apt to take it below this level, albeit briefly, to test liquidity and knock people out of their positions.
I would.
On the lower chart, Chris Hood’s Squeeze Trading Tool 1.2A is giving a signal that there’s price compression (red dots) with a squeeze set up.
The histogram is tight for now and the Squeeze Stochastic line has yet to turn green which would give us a bullish sign.
Now, when looking at the Fibonacci Retracement, it’s sitting in the “Fib Pocket” (50-61.8%) and that’s a plus for my personal trading style.
I’d anticipate a push down at the open to shake out traders before retracing higher, at least towards yesterday’s high if there’s enough volume…
If the share price finds support at the current level and breaks above the 50% mark and the 21ema, I’ll hop in.
Trade wisely.
(Disclosure: I hold no position in VIVK 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.
