HUT - a crypto-mining stock setting up for a long trade
Updated
HUT is a volatile small cap in the crypto sector. It has earnings in five weeks and so has plenty of time for a run to the report. On the daily chart, it finds itself in a descending falling more or
less parallel channel and testing the lower support trendline of that channel. The last trend
down took about six weeks. A Fibonacci 50% retracement would take price to 12 while the top
of the channel resistance which is falling would be in the zone of 14. Accordingly, a long trade
could be potentially in the range of 55-100% or so over two months or less. The stop loss set below support at 5.3 would provide for a good reward-to-risk ratio. For those who follow fundamentals and catalysts, HUT has a new CEO who is a turnaround specialist.
Plan- I will watch to see the short time frame RSI in green cross over the 50 level. I will then zoom into a 60-120 minute time frame and look for an entry point with narrow-range candles also going red to green and then take a long trade with those two targets. There are no options for this stock as far as I can tell.
less parallel channel and testing the lower support trendline of that channel. The last trend
down took about six weeks. A Fibonacci 50% retracement would take price to 12 while the top
of the channel resistance which is falling would be in the zone of 14. Accordingly, a long trade
could be potentially in the range of 55-100% or so over two months or less. The stop loss set below support at 5.3 would provide for a good reward-to-risk ratio. For those who follow fundamentals and catalysts, HUT has a new CEO who is a turnaround specialist.
Plan- I will watch to see the short time frame RSI in green cross over the 50 level. I will then zoom into a 60-120 minute time frame and look for an entry point with narrow-range candles also going red to green and then take a long trade with those two targets. There are no options for this stock as far as I can tell.
Trade active
I got in with size and short DTE options just in time for the pump today from theBitcoin reversal. Timing is not everything but it is a lot. Stop Loss is now above breakeven. This is now a profitable stress-free trade. RIOT in my portfolio as is
CleanSpark.
Trade active
HUT has an exhausting run today and needs to rest while some traders take profit tomorrow. Holding full position into next week. See posted ideas for CleanSpark,Bitcoin and MSTR...
Note
Bitcoin his flying high and HUT with its peers is trying to catch up. Options 5X overnight. Looking to roll them out another week. Holding full positions. Looking for an opening for an additional entry. If there is an afternoon fade for profit taking I will jump on the long opening then.
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