CELH is showing squeezes on multiple shorter timeframes, including the 195-minute, 130-minute, 78-minute, and 1-hour. That's a lot of compression, and it's a clear signal that this stock is coiling up for a potential move. For those of you who aren't familiar with squeezes, they occur when Bollinger Bands tighten inside the Keltner Channels, signaling that volatility has dropped and the stock is consolidating energy. Think of it like a spring coiling tighter and tighter—the longer it compresses, the bigger the move when it finally releases. Now, CELH doesn't have a squeeze on the daily or weekly chart, but that's fine. In volatile markets it's sometimes better to focus on shorter time frame setups. The shorter timeframes in CELH are showing stacked squeezes, which often lead to explosive intraday or multi-day moves. Adding to the setup, CELH had an inside day yesterday, which means it's trading completely within the range of yesterday's candle. Inside days are one of my favorite setups because they often act as a launching pad for a breakout. If CELH can break above its recent high, we could see those shorter time frames squeezes fire to the upside. Relative Strength: +25% YTD and Leading the Market Here's what makes CELH even more interesting—it's been outperforming the market in a big way. While the SPY and other major indices are stuck in chop, CELH is up +25% year-to-date. This kind of relative strength is exactly what I look for in my trading. When a stock is leading the pack, it's telling us that big players—institutions, funds, and hedge managers—are putting their money to work here. High Short Interest: A Potential Short Squeeze CELH has another thing going for it: high short interest (around 15%). Stocks with high short interest can be explosive when they start to move higher because short sellers are forced to cover their positions, adding more buying pressure to the stock. If CELH can break out of its inside day and fire those squeezes, this high short interest could act as rocket fuel. Quick Note on Fundamentals You know I'm all about the technicals, but I'll give a quick nod to the fundamentals here. CELH had a rough 2024, but they've been bouncing back in a big way. International sales are up +39%, and their recent acquisition of Alani Nu positions them to tap into the female-focused wellness market. That's great for the long-term view, but for this trade, the focus is on what the charts are telling us right now. Your Action Plan CELH has all the ingredients for a solid lotto play: - Stacked squeezes across multiple shorter timeframes (195m, 130m, 78m, 1hr, 30m).
- An inside day consolidation, ready to break out.
- Relative strength, up +25% YTD.
- High short interest (15%), which could fuel a short squeeze.
This is the kind of setup I love—a strong chart, a clear signal, and a great risk-reward profile. I'm keeping my position small, sticking to my stop, and letting the trade play out. And remember, gang, if you're looking for a faster way to catch explosive moves, don't forget about my Opening Bell Aftershocks strategy. It's designed to capitalize on high-probability setups like this one within minutes of the market opening. Click here to learn how to trade Opening Bell Aftershocks today. |
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