06/29/2022
Did you know that over 30 stocks printed 52-week highs yesterday?
When everyone is in defense mode, you won’t see many investors looking.
That is, of course, until it’s brought to their attention…
(Source: gfycat.com)
Of course, today’s subject is one that I wouldn’t have anticipated, which makes it even more interesting to analyze…
I love these types of companies because they’re often the ones that sneak up on you and beat expectations quarter after quarter.
And the chart of the day is… The Chef’s Warehouse, Inc. (CHEF)?
We’re on the daily, folks.
And I’d never heard of this company until late yesterday evening, but I’m glad I did…
If this is the start of a new trend — hell, even if it repeats the same pattern — this is definitely one to trade without having to worry about every tick.
With today’s chart, ALL indicators come to us via Chris Hood and frankly, they’re the best indicators I’ve ever found…
Want to learn how to use them and profit on a daily basis? You should click here.
Now, CHEF has based out and traded in the range outlined in black…
…since March of 2021.
And like yesterday’s chart, we’ve got another orange candlestick, or Divergent High Bar.
(Share price to print lower in 3-5 bars.)
The Squeeze Trading Tool 1.2A has identified entries and exits for this stock with jaw-dropping precision… an 81.25% win rate with a 4.9 profit factor.
And although the tools are showing plenty of green and the “Long” signal printed a few days ago, I’d watch for reentry to avoid getting caught in the chase.
You want to see a confirmed breakout with new support above ~$41.00.
If you look at the first black arrow, you can see the breakout level which is essentially a Point of Control similar to Volume Profile (not pictured).
I’d watch for CHEF to retrace to the ~$35.00 area and potentially a gap-fill closer to ~$33.00 (red arrow).
From there, sell options for income and trade to the long side once resistance breaks…
Keep moving,
(Disclosure: I hold no position in CHEF but intend to initiate a position within 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.
