Hey traders, it’s Matt here.
There are a lot of stocks moving every day in the market.
But only a handful will give us true opportunities to profit.
And this coming week, I’m zoned in on one name in the market.
- It’s related to AI.
- It has ties to NVIDIA Corporation (NASDAQ: NVDA).
- The price is already showing us a lot of volatility.
- And it’s not the only stock to spike with this catalyst.
- There’s a pattern here that we can reuse.
See the chart below that shows the multi-day breakout!
There will likely be other stock spikes this coming week from companies that have yet to announce news.
And I plan on trading this week’s new spikers.
But this stock is at the top of my watchlist right now. And almost more importantly, it proves the importance of a watchlist!
The spike started on September 5 … We had eyes on it weeks ago.
And it reached new highs last Friday, September 27. This is already a multi-day runner that’s shown us multiple opportunities to profit.
And the volatility is set to continue this coming week.
Applied Blockchain Inc. (NASDAQ: APLD)
Like I mentioned, we had eyes on this runner when it first started to spike on September 5.
That’s when the market learned that NVDA (among other investors) bought a stake in the company.
We were immediately intrigued because of the history behind this catalyst.
Earlier in 2024 …Â
We learned that NVDA invested in SoundHound AI Inc. (NASDAQ: SOUN) in February. See the chart below:
Then we learned in July of an NVDA stake in Serve Robotics Inc. (NASDAQ: SERV)
And when we learned of the NVDA investment in APLD on September 5, it was almost a no brainer!
Take a look:
Now … A lot of people are wondering where we go from here.
I’ve got a simple answer: I don’t know.
Nobody knows.
But … If the price action matches our patterns, we’ll know to make a trade.
There’s a difference. I’m not predicting that it will match my trading pattern … I’m waiting for the price action to show me a good setup.
And right now, I’m most interested in a very specific price level …Â
New Highs:
In the market, there’s a lot of buzz around 52-week highs.
See, if a stock can spike above the highest level in the last 52 weeks, it generally means that most people in the stock are now sitting in the green.
Which means, the stock has a great support level to launch off of with virtually no resistance above it.
When I zoom out on the APLD chart to include the last 52 weeks … What do you see?
Last Friday’s spike bumped right into the 52-week resistance.
If APLD can gain enough momentum to break through resistance, there’s no telling how high the price could spike.
Pay close attention to the price action this week!
Cheers,
Matt Monaco
*Past performance does not indicate future results