Key Points
- How preparation met opportunity for a classic first green day setup…
- Why timing your entries is so important…
- PLUS — the secrets to setting up your watchlist…
Bryce here.
I hope everyone had an amazing Thanksgiving. I spent some quality time with the fam and ate a lot of turkey.
Just before the holiday, I spotted a killer first green day setup on Society Pass Inc. (NASDAQ: SOPA).
Let’s go over what I saw in the setup and break down how to approach a trade like this.
Preparation Meets Opportunity
If I had to pick one lesson to take away from this setup, it would be that preparation is key.
Specifically, I’m talking about watchlist preparation. SOPA wasn’t a “scanner trade” that just popped up. I only saw it because I was prepared.
You want to populate your watchlist with former runners that have high social media interest.
You never know when these zombies can roar back from the dead (look at EVs and crypto stocks for two examples).
If they’re already on your watchlist, you can potentially catch them on their first green day after a period of sideways trading or downside selling.
This is what I did on SOPA. This stock was on watch for me because it had dumped so much in such a short time frame.
SOPA went from $40 all the way down to a low of $9.50 in 24 hours! Just like that, the stock got a 75% haircut.
I thought it was reasonable to expect a bounce. But again, I wouldn’t have noticed this setup if I wasn’t already prepared by having SOPA on my watchlist.
Timing an Entry
From there, the trade comes down to calling the bottom and timing an entry.
The first thing I noticed was that SOPA was only under $10 for a few minutes before regaining that important psychological support level.
It started flattening out in the $11s, which I think is a great entry level.
Note: When a chart’s starting to trade sideways after a massive dump — pay attention. A bounce could be right around the corner…
Then SOPA pushed up into the $14s on huge volume. That can be an opportunity to take some profits and then wait patiently for an opportunity to re-enter.
The chart started to tighten up again, holding $13.50 like a boss. After such a big move off the bottom, seeing that support hold was encouraging.
The low $14s, I think, is another trade opportunity, selling into a strong push to $15.
Timing entries was crucial in this setup. It ultimately came down to watching key support levels (and having the confidence to pull the trigger when they held).
All in all, this was a classic first green day setup. Let’s go over the indicators I saw:
- 75% dump for a former runner
- $10 support held in the morning
- $13.50 support held intraday
- Massive volume push off the bottom
Conclusion
Watch closely when former runners lose 50%–75% of their value in a short period. There’s almost always a bounce.
Even if the bounce is small, you can potentially play profitable scalps on these setups with relatively low risk.
Matt and I will be back in your inbox on Thursday with more strategies.
Until then,
Bryce Tuohey