RIOT
Stop loss: 8.45
Price target: 11.00-12.00
Analysis done on hourly candles. RIOT has made a name for itself in the bitcoin mining industry that seems to be capturing more and more traction across the innovative world. The company is meeting expectations in terms of earnings and continue to grow their fundamentals. Bitcoin is shooting for the sky and the company only mines bitcoin from the crypto markets, putting them in a strong position. The stock is in the middle of a pull back from their highs of 11.00 and they could still come down a bit more before we want to take on a full position. The best way to approach this stock is to start small and add more on a pull back, this is if you take the first entry option. If the stock doesn’t give a pull back, the second option for entry is at the breakout of 9.00.
DKNG
Stop loss: 47.40 (Low risk)
OR
Stop loss: 45.70 (High risk)
Price target: 53.00
Second PT: 56.00
Analysis done on daily candles. DKNG has been making some strong business moves lately as they’ve managed to partner up with Foxwoods Resort to provide online sports gambling for the Indian Tribe Connecticut Casino. They also signed a deal with the Detroit Pistons just before NBA returned, becoming an official sponsor of the basketball team. This is likely a move pursued by one of their new board members, Michael Jordan. Their position in their field is lucrative as more states and Canada begin to take a more welcome take on sports betting. With the NBA returning and the NFL heading into playoffs, Draftkings will naturally see a rise in demand from their user growth.
WKHS
Stop loss: 20.90 (Low risk)
OR
Stop loss: 19.70 (High risk)
Price target: 25.00
Analysis done on hourly candles. Although the company’s USPS potential deal is still in delay, they still have potential to see growth purely based on their leadership in the utility electric vehicle industry. The company has been in discussion to potentially supply USPS with new electric vehicles. Even if that doesn’t go through, the company remains attractive because of their ability to physically display their functioning vehicles unlike many other competitors and they have had orders for their trucks/vans. There’s a phenomena happening before our eyes in the transition of the world to electric vehicles, but we’re looking at it all wrong. Most people are focused on the front line consumer vehicle suppliers like Tesla, Fisker, NIO; however what we should look at is utility vehicle companies while they’re still young. If you could picture the timeline of transition for ordinary sedans for consumers, it would be a lot longer than the transition that will take place for industrial and utility vehicles to transition. This means the EV companies that are focused on building utility vehicles will see a much higher spike of demand through large orders industrial/utility contracts. This doesn’t necessarily strictly apply to WKHS, just a general consensus.
PLTR
Stop loss: 26.20 (Low risk)
OR
Stop loss: 23.80 (High risk)
Price target: 32.00
Analysis done on hourly candles. It has been quite a debut for PLTR on the public market now that the stock has tripled its market cap in just a few months. There’s a very important message in PLTR’s chart and that’s the fluidity of its move higher. When a stock gains, you typically want to see a steady climb to higher highs, not a vertical one. Vertical buying is typically caused by momentary catalysts or pump and dump ideals. Institutional buying however is steady and slow, which is what you want in a healthy stock. Palantir is in a niche market of a growing industry. They’re focused on data integration and using artificial intelligence to find solutions for the US federal government (and others) and they’ve just recently landed a $44 million contract with the FDA. Young investors are attracted to these companies because of the long term trend that we’re expecting in the innovative world. The transition to AI, blockchain, CRSP…etc. seems slow, but it is actually growing much faster in the government and private sectors than we see in the consumer world. PLTR may have positioned itself perfectly for the inevitable change in the world.
AMPE (High risk)
Stop loss: 1.52
Price target: 2.00
Analysis done on weekly candles. AMPE is in attempt to fill in the gap down it formed in August 2019. We’ve mentioned before that anytime stocks gap up for down, they eventually come around and attempt to fill them. This could take days, months, or even years to happen. We're looking for a breakout above 1.60 for entry this week. This is a high risk play, the company itself is not special so treat it as a high risk day trade or very short term trade.
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The stocks posted are the preliminary stocks and set ups we’ll be watching this week. All price points are subject to change based on market performance and sector health. Please do your own research and analysis on these companies/charts before taking on any set ups. Trade at your own risk and as always, good luck! Let’s have a fantastic week.