BBAI Round 2

30 mag

Big Bear AI is a military based AI company aimed at increasing productivity and efficiency for military endeavours in the USA.

Although this company is currently un-profitiable, it does seem to be providing a nice technical setup for a potential squeeze here after a previous breakout of the lower range volume profile.

I would like to take a long trade here as we break $4.20 and pump it up to approx $7.

Stoploss set to 3.70 in case this is a failed rally.

3 giu

Nota

Sellers are trying, you can see they are selling it every open but they cant really bring it lower. This is somewhat of a spring compression if you think about it. Buyers are absorbing sellers at these prices and eventually the sellers will run out before the market starts to offer it out higher.

3 giu

Nota

Watching this anchored vwap for the spring loaded bounce, we also have a high volume shelf in the same spot

4 giu

Nota

Here is your add in , stop below the wick

4 giu

Nota

This is the last resort for the bounce, it needs to happen now

4 giu

Nota

compounded on the drop

5 giu

Nota

For the real squeeze, I need to see the VWAP hold. If we flip the downtrend vwap, backtest and create a launchpad, it would be a very nice technical signal of strength. The alst time we got above, we got smacked down. So the moment we actually hold a daily close above will be the sign to look for approx above 4.30/4.40.

5 giu

Nota

we can see the vwap is strong , holding it down. But, keep in mind, the more we coil up and down, think of it like a spring compressing and getting ready for the pop. The only way this idea is invalidated is if we break the overall rising trend and get a daily close below 3.70.

5 giu

Nota

6 giu

Nota

Check the respect. Bounce off 3.70 to the DOT. Didn't close a daily below. Great sign

9 giu

Nota

If you're like me, and have issues with patience from time to time especially with this terrible choppy price action. Keep in mind we are still holding the uptrend vwap nicely, and continuing to make higher highs and higher lows. So unless we get stopped out on the daily, the trade should continue to trend in the larger direction upwards.

12 giu

Nota

Something I will share based on what I am seeing here, clearly the 3.70 zone is acting like a wall now, but this also means that it would be considered a liquidity zone. Meaning that people can be moving stop-losses in and around this area. Should we get what is known as a stop-hunt, be aware of this scenario where we sweep the lows, and this creates the liquidity to start the next leg up. If I see this play out, I will likely compound this position more on the reclaim of the level.

13 giu

Nota

This could be the liquidity grab I was expecting.

17 giu

Nota

Lets get this damn squeeze already

6 giorni fa

Nota

Adding a bit more at the vwap and POC, very nice support zone

3 giorni fa

Nota

getting a good feeling about this

l’altro ieri

Nota

MIGHT FINALLY BE STARTING

l’altro ieri

Nota

Taking a small profit at this zone just to realize some gains, and will leave the rest running if we can punch that $7 target!!

l’altro ieri

Nota

Look at that TP right to the exact zone, wouldn't be surprised if the market cooled off here a bit before continuation

ieri

Nota

This is essentially the breakout and retest, back to the high of the range. This are would need to hold here for the next leg up. You can see how "manipulated" this move is, as it goes straight down. The reason for that is likely becuase the buyers larger orders are all sitting in one particular zone which is why price drops 20% in about an hour. That is not normal and could suggest there are lots of buyers waiting to get in at this re-test zone.

ieri

Nota

Perhaps I can make a lesson on what happened here, because as you can see the price bounces at the exact zone. This is why I love analyzing volume profiles within the market. I remember I learned this from another mentor, those sharp declines are designed to create emotional responses in the market. But remember this, in order for someone to buy, there need to be someone willing to sell on the other side. And when price moves in one direction extremely quickly, in this case we had a very fast sell of, that means price is travelling in the direction where the most amount of liquidity sits. Therefore, I believe the most amount of liquidity in this case is sitting at this breakout level, and so price simply travels in that direction as fast as it can to get all the liquidity.

ieri

Nota

Now here is where things will be interesting, we would like to see buyers reverse the selling trend by reclaiming the downtrend vwap. This is a volume weighted moving average which will help identify wether a trend has continuation. By reclaiming, and backtesting, the market is providing us valuable data which suggests the downtrend is weak.

13 ore fa

Nota

Look at how the levels are respected. A thing of beauty