Stacked Squeezes: The Fuel Behind the Setup If you've been trading with me for a while, you know I'm obsessed with squeezes. They're one of the most reliable patterns for identifying big moves. A squeeze happens when a stock consolidates in a tight range, building up pressure like a coiled spring. When that pressure releases, the stock tends to move - and move fast. Now, what makes a stacked squeeze so powerful is when multiple squeezes are lining up across different timeframes. Think of it as a series of gears working together to create momentum. Here's what I'm seeing on DLTR: - 78-minute squeeze
- 195-minute squeeze
- 130-minute squeeze
This is the kind of setup that screams opportunity. The stock is coiling up across several timeframes, and when these squeezes fire, we could see an explosive move higher. Bullish EMAs: Why the Trend Is Your Friend Another reason DLTR has my attention is the stacked daily EMAs (Exponential Moving Averages). When the 8-day EMA is above the 21-day EMA, which is above the 34-day EMA, it's a clear sign that the stock is in a strong uptrend. Right now, DLTR is holding above these key levels, showing that buyers are still in control. The point of control (POC) - a high-volume area around $86.60 - is acting as a solid base of support. As long as DLTR stays above these levels, the path of least resistance is higher. Why Dollar Tree Is a Strong Play Right Now Here's why DLTR still looks like a great opportunity: - Clean Risk/Reward Setup: With the stock trading around $90, we've got a low-risk entry near support with clear upside targets.
- Sector Strength: Dollar Tree operates in the retail sector, which has been holding up well. In times of economic uncertainty, discounted retailers like DLTR tend to outperform, making it a solid defensive play.
- Momentum Is Building: The stacked squeezes and EMAs tell me that momentum is building under the surface. When this kind of setup fires, it often leads to a sharp, sustained move higher.
Your Action Plan Just two days ago I bought the 5/30 $89 calls for $1.51 per contract. And yesterday with the stock spiking above $90, I was able to reach my first target of $1.80 and then some (those options actually hit $3.30+). If the stock can hold $90, I wouldn't be surprised if it makes a quick run to $100. I'll be looking to get in again, and if you're a Daily Profits Live subscriber, then you'll know exactly when that is. If you'd like to learn more about Daily Profits Live, click here. Happy trading, Nate Bear |
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