Anyone can find a “hot stock” in the market.
It’s not difficult when charts like this are everywhere…
The trick is knowing where to buy them.
And I have a process for that…
It’s easy to think that this price action is one big mess of bullish momentum. But that’s not true.
Human beings are predictable creatures, especially during times of extreme fear and/or greed.
As a result, stock charts are simply reflections of human emotion. And it doesn’t take much training to learn how to read them.
I can show you on the Micron chart that I posted above.
And you can look for the same setup on the next one…
My Trade on MU
The AI momentum is seemingly unstoppable.
Every few days, there’s a new catalyst that pushes stocks higher.
- Trump just announced on Truth Social that Intel Corporation (NASDAQ: INTC) will partner with Apple Inc. (NASDAQ: AAPL) to design and build chips in the U.S.
- SpaceX announced it will acquire Anysphere, the creator of the AI coding tool Cursor.
- Anthropic and OpenAI both filed for upcoming IPOs after SpaceX’s IPO.
The entire tech sector is red hot.
Micron Technology Inc. (NASDAQ: MU) is just one of the names on a bull run, and on June 17, we had an opportunity to get in.
I shared this setup with everyone during the premarket livestream that morning:
You already saw the monster YTD run on MU… It’s up 256% this year.
The multi-month chart gives us a good idea of the overall momentum, but to find a good entry, we have to zoom in.
We have to look at charts on multiple time frames to find intraday price action that reveals key levels.
Here’s what I saw on MU:
- The stock is in a hot sector.
- It already bounced off earlier resistance twice.
- And on the morning of June 17, it reached the same support for a third time.
But how do we know it will bounce?
We don’t know that it will bounce. Nothing is a 100% garauntee in the market. That’s why we target the best setups and find entries with clear risk levels.
The level that MU bounced off of on June 16, if the price fell through that level after the June 17 bounce, we would get out.
The closer we buy contracts to support levels, the less risk we take when we’re trading.
Catch the Next One
You probably missed the entry on MU. And the market is closed today in observance of Juneteenth. So there’s no way to get in even if you wanted to.
Not that I would advise you to, because the contracts I bought expired yesterday.
Don’t worry about missing this trade. There will always be another setup in this market.
AI is still at the forefront of everyone’s mind. And the tech sector continues to give us solid trade setups.
For the best setups: Only focus on AI/tech stocks.
Then look at the chart on different time frames to identify support and resistance levels.
This is one of the most basic skills for a trader. It’s one of the most essential, too.
Here are some other bullish tech stocks to practice on while the market is closed:
- Marvell Technology Inc. (NASDAQ: MRVL)
- Keel Infrastructure Corp. (NASDAQ: KEEL)
- Alphabet Inc. (NASDAQ: GOOGL)
All three of these stocks are influenced by the AI boom.
Mark up the charts and start looking for upcoming entry levels.
Patient people take money from impatient people. Find good entries and wait for the stock to reach that level.
Be good (and be good to others),
Ben Sturgill
*Past performance does not indicate future results. Not typical.
