I’ve been going so NUTS in my Warlock’s World nailing down trades for all the VWAPians that I’m going to let my charts do most of the talking for me today.
DCFC broke VWAP on February 9.
Some stock that I’ve never heard of, Tritium (DCFC), came across my scanners.
I saw the word “Tritium” and thought “ooh Star Trek, I’m in.”
Really the reason that I was in was that DCFC broke VWAP, and got over a significant premarket price level, seen marked on this chart in red.
I was able to make a trade from $10.66 and sold it at $11. Then it went to $13 without me.
But look what it did.
You missed the first move, you missed the second move, you missed the third move. If it pulls back and holds the VWAP, any stock is tradeable again.
You get a nice trade to start the day and by the time the market opens, you’re sittin’ back, chillin.
But with DFCF, I wasn’t done yet.
DCFC setting a new daily high.
DCFC had a BIG candle when the market finally opened. The bottom of the big candle was now a stop for anyone still in the stock.
I was looking for a potential short, but price action was still inside the big candle. This means that price action could break either way.
This is when I told Warlock’s World members that if this thing breaks $13.86, the chances are it’s going to $15.
While I was still looking for a short, I didn’t let my bias direct the trade. I waited for the price action and VWAP to tell me what to do.
DCFC broke out well above VWAP.
I kept my eye on it, and as soon as it started to make a move to the upside, I got back in at $13. Then DCFC shot way, way up and got HALTED.
For me, when a stock gets halted, the bottom print of the first candle when a stock comes out of the halt is my first stop.
DCFC came out of the halt and KEPT GOING. The low print of that first candle out of the halt was $14.27 and I said, verbatim “$14.27 is our stop now, if it goes to $17 I’ll sell some there.”
DCFC just wouldn’t stop!
I recommended to set stops at $15 and to target $17.50 to the upside.
Because when stocks break out on huge volume and get over $10, they usually go to $12.50. $12.50 gets your $15. You get to $15, chances are you’re going to $17.50.
But we ALWAYS keep our stops in mind to prevent yourself from getting caught in the DUMP part of the PUMP and DUMP.
DCFC for the WIN.
Even after all of that crazy upside price movement, DCFC was consolidating at this elevated level.
The price was chopping around and not going away. If the stock sticks around and doesn’t break down, in my experience it will probably break out to the upside.
AND THERE IT IS.
DCFC broke $17.50 RIGHT. ON. CUE.
For anyone ever crying about “well, I didn’t hear you mention it” or that “well in Warlock’s World, you never do any trades in real time.”
HERE IT IS. Further proof that I’m the BEST.
I brought it to my VWAPians’ attention at $13.86. On this chart DCFC went all the way to $17.70. On 1,000 shares, that’s nearly $4000 in profit.
This trade is a great example of how sticking with one name can potentially make your entire day.
Work the trade. Get your significant price levels right. And WATCH.
THIS is what I do EVERY DAY.
Every day is the same. Every day is the greatest day ever.
That’s all for now, VWAPians!
Kenny “The Warlock” Glick
February 10 2022