Trade Idea: Rhymes with DEVO

06/08/2022

Have you noticed the amount of offerings hitting investors?

With capital now harder to come by and funding becoming more expensive, you can expect more of this…

The Fed is trying to control inflation and rate hikes are part of it.

*Believe it or not, Devo was a punk band that began using synthesizers in the 70s.
(Source: tenor.com)

The company we’re looking at today is a hopeful of many investors and, at one point, I owned it under $0.50, so the returns have been incredible…

But for now, things are choppy and I’d trade the chart.

This is Gevo, Inc. (GEVO):

Daily to the left… 65-minute with extended hours to the right.

I can’t stress how important it is to mind your time frames and today’s Before the Bell is a good example of why.

Nonetheless, you can find trades even when they don’t necessarily agree with each other… Just make sure you stick to your trade plan.

The highlighted circle is what I’m focusing on here…

The daily chart doesn’t say much, but the 65-minute does. And what it says is this is the local Resistance (note the horizontal red channel).

On the daily, I’ve drawn white dotted trendlines to show the trajectory of the most recent trend, discounting the breakout, of course.

After GEVO announced an offering, it dropped right back into the Falling Wedge and you can expect that shorts will be hanging around… I would be.

But if it breaks out of this pattern again, there’s a good chance it marches higher.

Support (horizontal green channel) is sitting between $2.70 and $2.80, so this will be the area to watch.

Now, for the purpose of today’s subject, I want to key in on the 65-minute chart for a potential trade idea…

Chris Hood’s Squeeze Trading Tool 1.0 has signaled an oncoming squeeze, and from the looks of it, I’m assuming to the upside. The histogram is trending higher as are the RSI and MACD.

(Notice how this differs on the daily chart.)

I’d watch for a move above the 21ema (neon green crossline) and a shove to the ~$3.50 area…

If you’re going in for the early bird special, pay attention to the support levels.

And don’t confuse your time frames.

Keep moving,

(Disclosure:  I hold no position in GEVO.)

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.

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