QS - QUANTUM GAINS INCOMING
Aggiornato
This has been a stock that has hilarious rocketed to over $100. I actually had a coworker tell me about this stock, battery hopes, rocketship emojis, and all that. He bought at $100 and sold at $45 today. Hilarious.
We don't get attached to stocks here. We are traders. And boy this setup was beautiful. Trading the B waves of exponential run ups are insane, and that's what we got on our hands here.
First let's look at the macro view. I think this stock is working on coiling down into an ABC. Now we are looking for evidence of completion of wave A.
For this idea, I have 3 price targets in mind. The risk reward is most favorable for target point #1 of $85. I will be selling there and moving my money to the next s*** stock.
Here, there is a blaring gap along the way that will want to be filled. I put the fib retrace on an endpoint of $38 which is the premise I am basing this trade around. Low and behold you have beautiful reactions and the other significant fib levels for retracements.
Two additions TPs were identified with reasons shown on the graph. Test your luck with those.
Next, let's dig into the major price levels I have for completion of wave A. From previous price action I have $45.50 and $38. I entered 70% of my long position at pennies away from the low this morning since I had identified $45.50. The remainder will go in IF we hit $38. If we don't go to $38, I will look for a retrace to enter, but only if trend reversal is confirmed by eliot wave count validation.
We have more evidence that the $38 price target is valid. Dissecting wave 5, it becomes a bit more clear. However, it should be noted that we already hit the 2.272 extension of 1 to 2 which is typical target for wave 5's. For this reason, I am 70% into my position. To also comment on why $38 is on the table, it appears that major indices are cooling off. SP500 ES futures have bounced off the top of channel defining this uptrend. AMZN and other tech stocks appear to head into a wave E of the triangle compression. Extra info there, but those are my proxies for this play if it has another leg down.
Lastly, let's talk about divergence. It is a leading indicator of a pending trend reversal. You can use RSI, PPO, MACD do, but prefer RSI with the standard presets. You have divergence on all major timeframes now. It will not be invalidated for a move to $38; will only extend it and add more meat to the bone.
GOODLUCK
s/o Hawk's Nest
We don't get attached to stocks here. We are traders. And boy this setup was beautiful. Trading the B waves of exponential run ups are insane, and that's what we got on our hands here.
First let's look at the macro view. I think this stock is working on coiling down into an ABC. Now we are looking for evidence of completion of wave A.
For this idea, I have 3 price targets in mind. The risk reward is most favorable for target point #1 of $85. I will be selling there and moving my money to the next s*** stock.
Here, there is a blaring gap along the way that will want to be filled. I put the fib retrace on an endpoint of $38 which is the premise I am basing this trade around. Low and behold you have beautiful reactions and the other significant fib levels for retracements.
Two additions TPs were identified with reasons shown on the graph. Test your luck with those.
Next, let's dig into the major price levels I have for completion of wave A. From previous price action I have $45.50 and $38. I entered 70% of my long position at pennies away from the low this morning since I had identified $45.50. The remainder will go in IF we hit $38. If we don't go to $38, I will look for a retrace to enter, but only if trend reversal is confirmed by eliot wave count validation.
We have more evidence that the $38 price target is valid. Dissecting wave 5, it becomes a bit more clear. However, it should be noted that we already hit the 2.272 extension of 1 to 2 which is typical target for wave 5's. For this reason, I am 70% into my position. To also comment on why $38 is on the table, it appears that major indices are cooling off. SP500 ES futures have bounced off the top of channel defining this uptrend. AMZN and other tech stocks appear to head into a wave E of the triangle compression. Extra info there, but those are my proxies for this play if it has another leg down.
Lastly, let's talk about divergence. It is a leading indicator of a pending trend reversal. You can use RSI, PPO, MACD do, but prefer RSI with the standard presets. You have divergence on all major timeframes now. It will not be invalidated for a move to $38; will only extend it and add more meat to the bone.
GOODLUCK
s/o Hawk's Nest
Nota
We had quite the reaction yesterday. It appears the stock has cooled off a bit, bouncing off the TL that has defined this gradual descent down. For the initial premise of target $38, the count is still valid.Few things I'm noticing if this is a wave 4.
1. double 3 wxy in play. clear wave count.
2. However, not exactly pleased with the fib ext for w x to project y. Typically you would want a 1-1.272 and this went to the 0.618. Still a good pocket ratio for correction completion.
3. This is a higher degree of complexity compared to wave 2 which is what you want according to rule of alteration.
Still holding my initial position, but be cautious if we do head to the $38 target.
If youre still looking to ladder in - either wait for lower prices, or if this is an impulse, look for a break of the channel AND break of wave 1 which would invalidate the wave 4 count.
Nota
Lots of action today on the major meme stocks. Surprised no one has created a meme stock index.Anyways, here's another update on the QS action.
I wanted to first provide updated levels that we may see a resolution at. There's really not a lot of historical data here since the stock is so new at these levels. I used volume profiling to identify nodes (no volume, or lots of volume). I still think $38 is the strongest node, but I think anything under $44 is a strong buy given the upside.
I wanted to show these levels since wave 5 of 5 extension is only at about $42.50. 2.272 ext from 1 to 2 is the MINIMUM for a wave 5. $38 is quite a bit past that level, so there's a few spots in between it could reverse at.Show far the Eliot wave on wave 5 of 5 is pretty clear that we are heading lower. any break of $44 will be a very fast move. It will capitulate sellers, trigger lots of limit orders and will be quickly bought up. be prepared.
Again, this is my primary count, but doesnt guarantee we make a new low. There's quite a bit of evidence suggesting we do.. I'm still holding my initial purchase where I picked up shares $45-50 range with cash available to buy if we go to these levels.
Nota
Not in love with the steep wave 4 in this subdivision but the 1.272 fib was hit nicely for a WXY. Still valid count for a move down. Peep the wedge, complimentary of Hulabalo. Tapping the floor now, more likely to break down
Nota
The subdivision of this recent PA suggests this is just a complex double 3 correction for wave 4 of 5.I scrapped the recent idea that wave 4 of 5 was actually complete, but instead suggesting that it has increased in complexity. There are no impulses in this PA.
If $54 is broken, then I have something in the count wrong and that this is indeed a reversal. Until then, the lower targets remain valid and my primary count.
Nota
Wave 4 was complete by complex correction. Not beautiful but it works by the EW wave count and fib levels. Last impulse broken down like this with target at $42 which aligns with price level previously identified
Theres an alternative count that has this wave 5 as an ending diagonol.i haven't looked into that but that theory has validity. Both counts end at $42
Nota
Good job riding this out guys. So far my theory is playing out, as we created a new low today and tested the support as resistance. I'm expecting a gap down or a swift move down Monday. I'm calling the bottom at $42. I will be buying the remainder of the long position then with a S/L at $38. Don't get caught bagholding if we go to $25. Another strategy for entry could be to wait for an impulse with a solid count. I'll be keeping an eye on crude and major index futures thru the weekend to see if they continue to break support.
Well done on sticking it out this long, and Goodluck
Nota
Cleaned up wave 5 subdivision back to prior count that had the wave 3 ending at 1.618. Got the wave 5 ext to 2.618, indicating the final wave down is complete and the bottom is in.Nota
Broke out of descending wedge, back testing, resistance line, bounced off $44 support.Next stop $51/$55 where you have resistance of the long term trendline.
Will be a bit bumpy thru that range due to volume profile, and will update when we have a clear impulse.
Nota
Either ZZ or WXY down for wave 2Nota
Fucken send it. Next stop the moonNota
The ABC was invalidated. I was a bit hesitant on that because the fibs didn't land for the C wave. The revised count is a complex wave 2 comprised of a 333 structure.
We have confluence at $42.50.
Nota
Completed at the 618 for third wave of the WXY.Bounced off the 706 fib of wave 1 retrace which can be typical reversal for traders looking for the 618.
Wave 3 underway expected $69 which is the 2.618
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