This past Tuesday afternoon (Feb 9), one of our long term subscribers, Sid_F, asked Mike in his MPTrader discussion room what he makes of QS (QuantumScape Corp), which develops and commercializes lithium-metal batteries for Electric Vehicles.
Mike responded: "Sid, QS looks to me like it ended a major correction from its high at $132.73 (12/22/20) into its $40.62 low (2/01/21), and for the last week or so, has been carving out a potential bottom ahead of lift-off into a powerful rally phase. To gain consequential positive traction, QS needs to climb above $45.00 initially, but then to follow-through above $45.90-$46.00 to confirm the up-turn, and to take off towards $51-$53 to challenge extremely formidable resistance. On any further weakness, we don't want to see QS break and sustain beneath $43.00."
QS, which was trading at $44.29 at the time, went on during the week to trade in a volatile sideways range between $43.60 and $47.00 into Friday morning, when Morgan Stanley's top analyst, Adam Jones, announced his initiation of coverage of QS, with an Overweight rating, and a 12 month Target Price of $70!
According to Jones, "As US-based EV players (including Ford, Apple, etc.) look to secure a domestic supply of advanced solid state technology, we believe QS may be very well positioned."
It's not unusual that Mike and our members identify a developing chart and technical set-up that put the name of a company on our radar screens ahead of a significant fundamental catalyst that supports and propels price action in the direction of our technical outlook. In this particular case, the Morgan Stanley announcement propelled QS from last Thursday's close at $44.91 up through Mike's initial key resistance zone at $51-$53 (see chart) to an intraday high at $56.16.
QS closed Friday's session at 54.63, up more than $10/share and 23% above Mike's initial technical commentary posted the prior Tuesday afternoon.
What's next for QS and the white-hot EV space? Join Mike and our members for compelling intraday discussions about QS, as well as many other names, ETFs, macro indices, commodities, and cryptocurrencies.
Eight weeks ago, Mike Paulenoff discussed the budding technical setup and upside breakout in CRWD (CrowdStrike Holdings) with our MPTraders members, writing:"CRWD has followed the bullish scenario we discussed in late August, and in fact, today (10/06/23) has thrust above 5 months of resistance to new recovery high territory at 176.32. Although my next optimal upside target zone is 190-200, the BIG picture setup points to 230-240 thereafter... Last is 174.86...
On Monday morning, November 13, 2023, a full 5 trading sessions before the approaching November Options Expiration (OPEX) (11/17/23), I posted my chart-based commentary for our members:SPY-- Considering that Friday is November Option Expiration, where are the "magnetized strike prices" as we start OPEX week? Based on my attached Hourly Chart, the magnetized strike price zone spans from 436 to 441. Should SPY take out the upside barrier of 441, then the follow-through outlier magnetized target could be as high as 450 before or on Friday.
On October 23, 2023, ten days before the November 1st FOMC meeting and policy statement, I posted the following commentary about the downward-spiraling TLT (20+ year T-bond ETF):My attached 4-hour Chart of TLT shows that the relentless and near-vertical downtrend that commenced at the beginning of August from around 100 hit a new long-term low at 81.92 this AM, positioning it in my intermediate-term optimal downside target zone from 80 to 82.
On the afternoon of September 25, Mike Paulenoff posted a warning signal to MPTraders members about the developing acute oversold condition in RTX (formerly Raytheon Technologies), writing:"RTX (formerly Raytheon Technologies) hit a new multi-month corrective low of 71.02, down 33% from the 4/10/23 post-pandemic High at 106.02. Although RTX has violated my optimal target window of 73-75, the stair-step corrective pattern off of the 4/19/23 high at 104.
On October 3, Mike Paulenoff posted the following "Heads Up!" about GLD (SPDR Gold Trust, ETF) for MPTrader members: "GLD has pressed to an important technical inflection window from 169.50 down to 166.30, from where I will be expecting corrective downside exhaustion off of the 5/04/23 high at 191.36, and new buying interest. From a nearer-term perspective, given the acute oversold but CONFIRMED Momentum reading of 17.16 an hour ago, my preferred scenario argues for another loop down that marginally violates today's low at 168.