Hey, Ross here:
And let’s start the day with another high potential trade idea.
Chart of the Day
Kingsoft Cloud Holdings (KC) provides services such as cloud storage and cloud computation services. It is the web cloud service of China, so to speak.
The company has recently had a nice run in price where it was creating steady higher highs and lows after trading to the sub $2 lows. From those lows last September it ran 400+ percent.
We can see that the initial sell off came all the way back down to the support level it made above the 200-day moving average (the red line) before it held and started to rally higher.
Its price is now retesting the $5 area (marked by the white line). If it can ultimately hold then this can be a nice runner to hold back to those highs and ultimately higher prices.
P.S. Would you like special trade prospects and potential market moves sent directly to your phone? Text the word ross to 74121.
Insight of the Day
When sentiment is forced to change, opportunity windows are created.
Think about how a typical “breakout trade” works.
We see a pattern of shallower and shallower retracements as buyers start pushing out the sellers.
Once all the sellers are flushed out, the price is free to shoot higher.
Now think about the current market sentiment.
The debt ceiling drama has been resolved, inflation is slowing, the Fed is likely to pause, and the job market is still strong.
And yet, market sentiment is still so negative, with a bear lurking in every single forum, news article, and comment section.
Guess what? They’re all being forced into shifting their views by the market.
In short, they’re the sellers being forced out right before a breakout happens…
And that’s creating plenty of opportunity windows you can exploit using this strategy right here.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
