Let me show you two charts that I believe are heading into reversals.
They are both in the electric car battery business.
The first stock is FuelCell Energy (Ticker: FCEL):
FCEL has traded from $6.42 on May 11 to a high of $12.62 yesterday. I think it’s ready for a pullback, possibly to the $9.50 area.
This doji is my indicator of a reversal. Remember a doji is found at the top of an uptrend or at the bottom of a downtrend and signifies a change in sentiment.
Looking at the options chain, I would like to buy the June 18 12-strike puts for around $1.15.
I will get out of these if they trade down to $.60-$.65. I will begin to take profits $2 and higher.
The second stock I am looking at is Plug Power (Ticker:PLUG). It’s chart is very similar:
PLUG has gone from a low of $18.47 on May 11 (same day as FCEL), to a high yesterday of $34.38.
It has a doji signifying a possible pullback.
I like buying the June 18 33-strike puts for around $1.75.
I will begin to take profits on these in the $3 area and bail out if they trade down to $1.20.
Let’s Review Past Trades
- I sold my Quantumscape (Ticker: QS) June18 26-/31-strike call spread for $2.96 for a 96% profit.
- In SPDR S&P Oil and Gas (Ticker: XOP), I still have on the June18 95-/100-strike call spread on. It is currently up 49%. I was looking for XOP to trade $100; the high yesterday was $98.61. I will be watching this closely to take my money.
- My Rocket Companies (Ticker: RKT) June 18 19.50-/29.89-strike call spread is doing well, closing yesterday up 82%. I know you are thinking, why isn’t she taking the money?Looking at the chart, RKT is still looking strong, but I will be watching closely.
- General Motors (Ticker: GM) was a no go, the stock did not trade lower, so no trade.
Exciting time at Profits at Pumps, with wins rolling in and more on the stove.
And, of course, don’t forget to join Bill Griffo for his LIVE event tomorrow, “The Digital Currency Arms Race: How You Can Stay Ahead of the International Plot to Kill the US Dollar .”
Register here now!
Thanks for Reading … See You Next Tuesday!