Despite it being a short trading week, there are still a lot of opportunities out there for you to capitalize on…
Just remember, make sure you let the right patterns/setups come to you!
Don’t chase stocks you have already missed based on FOMO, thinking you need to get in on the party…
Instead, be prepared for when the next trading opportunity presents itself.
There will always be trades that you may have missed, I have missed several trades throughout my career….
And the best thing to do is add it to your watchlist for possible opportunities in the future.
Over the last few weeks, we have seen a significant amount of runners that all of us should be focusing on…
So today I want to share with you 3 hot stocks that I am closely watching for this short trading week!
Table of Contents
Why Does Volume Matter
With trading, there are a lot of pieces to the puzzle that have to fit together to get us the right patterns/setups to fit our trading strategy…
But there is one big reason why some of these setups fail…
And that is volume.
Volume can help propel the stock higher, allowing traders to reap the benefits as the stock continues to tick higher and higher…
And if there is not enough volume, we may not see the outcome we visioned.
Whenever I am alerted by StocksToTrade Breaking News, most of these stocks have the volume to help propel the stock higher…
News catalysts can be very powerful as they can attract many traders from positive news, bringing volume to the stock.
Just take a look at one of our recent alerts and how SenesTech, Inc. (NASDAQ: SNES) had an incredible amount of volume on one specific day.
But with every trade, I am still looking for key resistance and support areas to have an idea of when to buy or sell…
If a stock is approaching a key resistance level, it will need the volume to help it break out…
So let’s look at the 3 hottest stocks I am watching
Breakouts
Maybe some of you have traded these stocks in the past…
But I traded this one stock when it previously broke out from a key resistance area…
And yesterday it broke out again.
Meta Materials Inc. (OTC: MMTLP)
Notice over the last several days, the volume has dipped off, but it returned yesterday helping the stock propel higher.
I traded this stock as it broke out, profiting 4.4% on my recent trade.
MMTLP had a lot of buyers, sending it higher through its previous resistance.
Yesterday, this wasn’t the only other stock on my radar that recently broke out…
Meta Materials Inc. (NASDAQ: MMAT)
MMAT is another recent multi-day runner over the last several days that had volume to help it propel through a multi-month resistance level.
Breakout patterns are something every trader should look for because this recent momentum change can help set up more opportunities for traders.
More Breaking News
- Snowflake Stock Soars As AI Deals And Earnings Beat Ignite Rally
- Micron Stock Rockets As $1 Trillion AI Memory Bet Accelerates
- American Airlines AAL Rallies As Spirit Exit Reshapes Skies
- FUTU Stock Rallies As Goldman Targets $205 Upside
The Third Hottest Stock
Above I mentioned two of the hottest stocks I have been watching based on their recent breakout levels…
But if you missed a stock’s breakout, it doesn’t mean you missed all opportunities and should ignore it.
You want to wait for the right opportunity, and with penny stocks, most of these will come crashing back down to earth…
Resulting in possible dip buying opportunities.
Most of these multi-day runners are testing a key monthly resistance level, which would need volume to break through like MMTLP and MMAT.
So what is the third stock I am closely watching?
Creatd, Inc. (OTC: CRTD)
CRTD has tested its monthly highs three times recently, but it’s struggling to break through…
But I am waiting for a solid morning panic to dip-buy on as it continues to test the key resistance level.
Stocks that test these resistance levels don’t always break through, but if CRTD is going to…
You’ll start seeing it setup and volume will be reintroduced before it breaks through.
If it is to break through, make sure you are prepared and wait for a solid break!
Final Thoughts
Just because it’s going to be a short trading week it doesn’t mean there wouldn’t be any trading opportunities…
But you want to remember to look for volume and wait for the right setups to come to you.
Trading is a game of patience, and we have seen a lot of stocks that continue to spike over the last several days…
And I expect this to continue thanks to the January Effect.
I will be closely watching these three stocks for an indefinite period of time, will you?
Study up!
Tim
P.S – There are several key steps every trade needs to follow in order to be successful. As we continue to see stocks spike, I want you to be ahead of the game! Here is the next step you should take to get ahead of the curve!
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