[ad_1]
Last week I told you about my trade idea in FAZE. If you missed it or forgot about it, you can read more here. Now whilst this trade didn’t work immediately, as I had hoped, the shakeout provided even better prices to get long the stock. Yesterday FAZE closed strong, in fact, it was the highest ever closing price for the stock. There’s already been a nice move in FAZE, but if it can get above $15 there could be some fireworks today. Here’s what the chart looked like at yesterday’s close:
I ran through this trade idea in 360 Wall St LIVE. This summer, I’m giving access to our new trade room 360 Wall St at 0 cost. Our best traders will break down their best trade Ideas, and strategies live daily! You can watch the broadcast Daily Here:
Not only that, but if you sign up to our newsletter, you’ll get 2-3 of our Traders’ top ideas daily, before the market opens. There’s no better way to prepare for the trading day! Download the app and sign up NOW!
FAZE had its SPAC merger 2 weeks ago with B. Riley Principal 150 Merger Corp. A total of 15, 883, 295 shares were redeemed at $10, reducing the float size by 92% (per Benzinga). What this means is that while the company raised a lot less cash than they wanted for the listing, the amount of shares outstanding is very small.
When the amount of shares in a company outstanding is small, this can lead to wild moves when big players smell blood. This is because big money can buy up a lot of shares and effectively push the stock much higher, IF the rest of the market also buys, in that there can be a situation where there are not many sellers left.
These moves can become even wilder if a short seller becomes trapped fighting the stock. I’ve seen this setup time and time again over the last few years.
Thus when I saw FAZE break out, on significant volume on July 25 , I knew I wanted to be in the trade but didn’t want to chase the stock.
Thus I put in a bid in and around VWAP (the volume weighted average price) at $13.10. Given that VWAP is an approximate average price for the day, and my trade idea is that tomorrow we move much higher, this is a good spot to get in.
Well, after refusing to break out immediately, FAZE had a shakeout to $10.20, getting rid of weak hands. Since then, it has skyrocketed in 2 days to a high of $14.92 and its highest ever close at $14.21. If it breaks over $15 today, its blue skies, and there’s no telling how high this stock can go if short-sellers are trapped! I think $20+ could be on the cords. Get your popcorn ready today, folks, because either way, this is going to be an interesting battle! Here’s what the chart looks like at yesterday’s close
I discussed this trade LIVE in the 360 Wall St. room along with others. Take your trading preparation to the next level. Click here and join us live in 360 Wall st!
If You’re struggling with your trading, become a part of the Total Alpha community, and receive the education you need! CLICK HERE NOW TO SUBSCRIBE!
There’s a 30-day satisfaction guarantee, so if you’re not happy, no worries, but I think you’ll love what we’re doing at Total Alpha! Click HERE to Subscribe!
For a limited time, we’re also giving access to the 360 Wall St Chat room at 0 cost. We’ll be sending you our latest newsletter- 360 wall st. Think of it as your “360 view” of the market each day, where you can benefit from multiple perspectives. Sign up HERE
Every trading day, you can expect to receive 2-3 of our traders’ top ideas.
It could be an option trade I really like, a crypto idea from Jake McCarthy, a momentum stock idea from Jason Bond, a fast-moving penny stock that Jeff Williams likes, a trade Davis Martin finds enticing, or maybe even something unusual that one of Ben Sturgill’s scanners has picked up. Sign up HERE, and get access to 360 Wall St at 0 cost, for a limited time.
[ad_2]
Image and article originally from ragingbull.com. Read the original article here.