It was Friday. And I took a commerce going into the shut.
It was a easy setup, a dip purchase off the highs that I offered after-hours for a pleasant single.
However the inventory additionally had all the suitable elements for a weekend commerce.
So, I really took two positions.
Just a few college students requested why I took the commerce within the first place.
Others needed to know why I didn’t promote when it dipped after-hours.
So, I need to go over my weekend commerce as a result of the setup is certainly one of my favorites.
The truth is, my first-ever six-figure commerce was on a weekend play.
I haven’t traded with that sort of measurement in years.
Nowadays, I commerce with a small account as a result of I educate college students with small accounts.
And this commerce didn’t find yourself being an enormous win.
In the long run, though it gapped up, it couldn’t maintain its good points.
So, I bought out for a tiny win (roughly break even).
However the recipe is similar and the elements have been there.
Once more, this one had every thing going for it, so take notes (and bookmark this).
It’s NOT the primary time we’ve seen this setup (and it WON’T be the final time).
Test it out…
The Recipe for Weekend Commerce Success
Atomera Integrated (ATOM) had a transparent multi-day, multi-week breakout on Friday.
Right here’s the 3-month chart…
Supply: StocksToTrade
ATOM 3-month, each day candle, multi-week breakout.
The transfer again in February went from the $2s to the $7s.
That makes ATOM a current supernova (at all times value watching).
Friday was a primary inexperienced day. And though it was uneven, it had key help round $8.40…
Supply: StocksToTrade
ATOM 4/24/26 intraday, 1-min candle, key help stage.
Nonetheless, some college students requested why I purchased it 5 minutes from the shut when it was off its highs.
How To Decide a Weekend Commerce Setup
This may appear unusual if you happen to’re new, however this commerce (and any weekend setup) can’t be judged by how a lot you received or misplaced.
Why?
As a result of typically you’re going to lose. That’s buying and selling.
The easiest way to evaluate the setup is predicated on risk-to-reward.
In different phrases, did the commerce have sufficient going for it to get in and maintain over the weekend?
ATOM had each ingredient…
• Sector Momentum. Acknowledge that chip corporations are scorching. Whether or not it’s Intel Company (INTC) spiking 25% on Friday, or Superior Micro Units Inc. (AMD) … Or every other chip inventory. It’s a highly regarded sector.
• A Information Catalyst. The corporate introduced an expanded collaboration with Synopsys Inc. (SNPS), which is a a lot larger firm within the semiconductor business.
• A Breakout. Once more, it was a multi-day, multi-week breakout.
• Holding Positive factors Going Into the Shut. Sure, it was off the excessive of the day, however nonetheless largely holding. Particularly at that key help stage.
I used to be in a position to purchase simply above the important thing help at $8.40ish.
Despite the fact that I didn’t get out proper when premarket buying and selling opened (which might have given me a giant win), the setup was stunning.
And since I knew the important thing ranges, as a result of, frankly, my weekend technique is sweet…
As a result of the information was already out…
And since it was a stable threat/reward given the drop off the highs with help just under my entry.
This can be a stunning commerce.
Key Takeaways from ATOM
A number of college students requested (even after the commerce) how I throw out the numbers and evaluation on a inventory like ATOM.
There are three issues to recollect:
1. I have a look at fundamental help and resistance. A help stage is a value a inventory tends to remain above. A resistance stage is mainly the alternative. It’s a traditionally excessive stage for a inventory … a value that the inventory had hassle breaking by up to now.
2. I’m mainly a glorified historical past trainer. Examine previous charts. Except you’re model new, you need to know this. And if you happen to ARE model new… now you already know. ATOM is a former supernova a number of occasions over. I’ve been watching and buying and selling this inventory since late 2020.
3. Examine HARD! This isn’t rocket science. You possibly can be taught most of what you should know in just a few years. However you MUST research exhausting. Each. Single. Day
When you have any questions, electronic mail me at SykesDaily@BanyanHill.com.
Cheers,
Tim Sykes
Editor, Tim Sykes Day by day
