07/21/2022
Today’s stock hit my scan twice in the last week…
I don’t know that it’s a good investment, but the infamous r/WallStreetBets subreddit made it run not too long ago.
I can only think that it was partially chosen because of this:
And looking at the chart, it could be setting up for another go.
Here’s the chart on Bed Bath & Beyond Inc. (BBBY):
Above is the 78-minute chart.
You might wonder why I switch between time frames so often, aside from the timing of signals…
Win rate and profit factor.
Rather than altering indicators, you can simply change time frames until you get the look that backtests to your standards… and that’s what we’re doing here.
I skipped the Fibonacci Retracement for today and am focused on the Support and Resistance channels along with the large upside gap.
This gap has yet to be filled and won’t be until ~$6.45 prints, that’s about ~15% from yesterday’s close.
Support has been constant for nearly one month, making this level reasonably stable…
As for Resistance, BBBY has open space to ~$7.15.
On the Squeeze Trading Tool 1.2A, we’ve got all green both on the Stochastic and the histogram…
Now, ideally, you get into the trade early where the “Long” signal is, or as soon as the histogram flips green.
Does this mean it’s too late? Not at all… You just have to be aware that the move has already started.
The current settings give this trade a 59.7% win rate and a 1.1 profit factor, all things constant.
The Squeeze 4-Pack v8 is also green, although some momentum has been lost on the 5 and 10 period (dark green). This can change in an instant…
Lastly, the last candlestick to print is purple, meaning we have a Divergent Bar forecasting higher prices in three to five bars.
I’d watch for a break over $5.75 on strong Volume.
If that fails to happen in the next day or so, you can expect a pullback to test the previously broken trendline. Call it ~$5.25 or so.
If you take the trade, let me know if it works out!
Keep moving,
(Disclosure: I hold no position in XME 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.
