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This Chart is Ignoring the Iran Selloff

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Trade of the Day Wake-Up Watchlist

"CAVA closed strong on Friday and after some consolidation I believe it's ready to surge again."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

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Markets opened in the red again yesterday as the conflict in Iran showed no signs of colling.

My plan for this trading week is to stay light – no guns blazing.

Instead, I'm looking for charts that are ignoring the macro noise and moving on their own terms.

One of those tickers is Cava Group (CAVA).

I'm looking to add to CAVA early and often this week.

Here's why….

CAVA closed strong on Friday, riding continued momentum from a blowout earnings report. That gap up created a buy opportunity – and I believe we see a gap close and then some as the week plays out.

Check out its chart below.

 

You'll see a clear gap up, followed by some weekend consolidation. This is the kind of setup I love. With clear momentum, we just need a trigger for a gap close.

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Action Plan: CAVA is building on post-earnings momentum, and the chart structure points to a move higher. I think we could see a nice move up on the chart soon.

It's why CAVA is one of my top watchlist trades this week.

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