If you look at some of the fastest-moving stocks in the market… the ones moving 30%+ in a day, heck even the ones that skip points on any given day…
You’ll find one common factor — they typically have low floats, which can make them go parabolic.
I mean if you look at Hennessy Capital Acquisition Corp (HCAC) in the after-hours on Friday, the stock went absolutely bananas and closed at 26.13% higher at 8 PM ET.
Of course, the move was telegraphed because there was one key pattern that signaled this breakout.
— RECOMMENDED —
Jason Bond is revealing his watchlist of stocks that he thinks will gap up this weekend for profits on Monday.
He calls them his Monday Movers… and tomorrow morning his entire list will be “leaked” to thousands of traders who are members of his Monday Movers service.
While I can tell you all about it…
I want to do you one better and show you which two stocks can break out this week based on the chart setup.
Forum Merger III Corporation (FIII)
This SPAC is rumored to be in merger talks with Electric Last Mile Solutions, which is an EV company focused on delivering electric vans.
While the deal has not been confirmed yet, traders are excited to get their hands on SPACs with the potential to become hot EV plays.
Float: 25.741M, SI: 0.07% – this SPAC should be kept closely on watch since it could run higher in anticipation of the deal announcement.
The stock broke above all of the key Fibonacci retracement levels. Now, it’s got a bull flag/pennant forming. If it consolidates and holds above $11.40, that’s a sign FIII can break out from recent highs.
Vision Marine Technologies (VMAR):
Vision Marine Technologies Inc., doing business as a Canadian Electric Boat Company, designs, manufactures, rents, and sells electric powerboats in Canada.
This unconventional EV stock has gone public on 11/24 and was under the radar of most traders.
Float: 0.947M, SI: 0% – such low float creates an opportunity for an explosive rally.
VMAR is coming off a key support level, as shown on the 15-minute chart below. Now, the stock is on the rise, and if it can get and stay above $16… I think the highs at $17.20 are in play.
If VMAR gets above that, then the $20 level is in play.
Keep these two stocks on your radar, and I wouldn’t be surprised if the hype train rushes into these stocks.
A lot of traders will see a stock and just jump in randomly. In order to an elite trader, I think it’s crucial to nail your entries and exits…
For example, with those two plays I laid out to you, if I were to trade them… I would have an idea of where I want to get in, take profits, and stop out.
Every day, momentum stocks are popping off.
Once you find out what these setups are, I think you’ll be surprised at how often you see them pop up.
I’ve taught these patterns for about a decade, and I believe they’re tried and true.