Here’s your trade on Marathon Digital ($MARA) – April 14, 2023
This is Dan Fitzpatrick, at the risk of repeating myself too often, I’ve been on Marathon Digital ( NASDAQ: MARA ) for a while. I should have been in a couple of days earlier if I had seen it, but I didn’t, so here we are. We put our members in at 10.25, somewhere a little bit earlier, anyway, even at 10.25, the stock, just a few days later, is up 20 percent, I think it goes higher.
If you look at the weekly chart, I kind of have a hard time making the case for this NOT to go to at least $15.00. You look at these Bollinger Bands, how they were, they were fairly tight here. This is again, a weekly chart, so they are going to be wider, they are fairly tight here. But then you see how these things are taking off. They are just extending away from each other, which is what you see during explosive moves, which is really what this is.
It really is an explosive move, so when you see that, it really pays to pay attention and trade in the order, or along the same way that this thing is moving here on the upside. And then, frankly, what you’ll look for as a sign that the initial move is over, you look for a little hook. You look for the opposite band to swing the other way. Here, it is extending to the downside. But at some point, that band will start to give you this little fishhook look. And that is when you say, okay, this initial move is over, and that is what we want to look for on the weekly.
Now, on the daily chart, you can see the same thing. But guess what we are not seeing? We are not seeing any indication at all, that this opposite band is going to start hooking, it just keeps going. It keeps going for how many days in a row, 4 days. This stock has traded outside the upper Bollinger Band on an expanding band, this is out of a volatility squeeze. So this is really exactly what you want to be seeing.
Now, if you are already in this stock just let it go. When you are in a trade like this, it makes up for a lot of little sins. Not a big sin, if you ever have a big loss, get a second job to get that money back. You don’t want to be trying to trade your way back from a huge loss, the math just doesn’t work. But if you are in trades like this, all it takes is one or two to really, really compensate, actually overly compensate, for the little losses that you have taken in a choppy market.
The only way you can let that happen is just to let the trade happen. Just let the stock keep running, as long as it just keeps printing higher intraday lows, and higher intraday highs. It started here, and how many days are we seeing it? This is a really strong close at the end of a really, really strong week. This is where the stock closed last Friday, now it’s up 50 percent. I’ll take that, I’ll take another week just like it.
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