Can $MNST continue to be a Monster trade? – January 31, 2023

by DAN MNST 
This is Scott with your Chart of the Day. Dan Fitzpatrick at StockMarketMentor.com has this stock ( NASDAQ: MNST ) on his Active Trade List. We have members that are in this stock right now, but, I think, it is actually setting up to offer another potential entry if you are not already involved. As you can see, the stock is basing nicely along 3 key moving averages. We have the 8-day, 21-day, and 50-day support.

What I really like about this chart is this day here. We had a massive bullish engulfing candlestick, coming on higher than average volume, just slightly higher than average. Still, it brought the stock back through a clear level that the market had been defending but for whatever reason the buyers let it fall down. Maybe you were someone that got stopped out of this and then missed this move back up, that can happen sometimes.

I know that sometimes I get shaken out of a stock, and I can almost take it personally. It’s like, how dare you shake me out, and then rip everyone’s face back to the upside. But I can see this clear pivot right here. You can see how it is near the highs back here from December, and then we are right there again. So I am wondering if this stock has a chance to continue its monster run with a break and a close above that level.

I will set an alert on my software right around that 104.35 zone and look for a strong move coming on higher-than-average volume. We are really going to want to see that volume come into the stock to confirm that anyone who is short the stock is going to cover, etcetera, etcetera. So we really want to see a strong move through that level coming on volume, I’m going to look for it. I have an alert set on my software, you should keep it on your watch list too.

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