Here’s the level we’re watching on $HUT – October 14, 2021
HUT
This is Scott with your Chart of the Day. I want to follow up on Hut 8 ( NASDAQ: HUT ). Dan Fitzpatrick, yesterday, for Fitz in Five, highlighted Hut 8 ( NASDAQ: HUT ) as he added it to our Active Trade List at Stock Market Mentor yesterday. Someone asked about this stock today in our Active Trading Forum, and I have got to tell you, I like how it’s trading.
As you can see, if I zoom out it has a giant cup and it’s kind of bumping up to a recent consolidation zone. Up here around this $10.00 level, this is where sellers have come in before. I’m fine with getting a little push back at this area because that is kind of where we saw selling in the past. It did gap down here, you can see, they did a stock offering and had to shake off some of that news and supply.
But what ended up happening is that it traded pretty orderly. If I bring in the volume profile here you can see how, even on days when the stock was under most of the major moving averages, the buyers were still showing up in force, and you can tell that by the big skyscrapers here, showing up in force to really kind of support the stock and hold it so it wouldn’t even fall down to that 50-day moving average here, that’s the red line.
So what ended up happening is, it ended up kind of trading in this really nice clean downward sloping trendline. So you had a pretty clear level to define your risk. You know that above there, you’re good. Below there, not so good. It got above, held above, and did it on good volume, and even gave you a pullback entry here. Now, since then it has just, again, finding consolidation, finding sellers up around the same area where it sold before.
I really think that this is a quite healthy price action here on Hut ( NASDAQ: HUT ) because while Bitcoin is running and chopping around this stock is still holding up above all its key moving averages. If I draw a little resistance level here you can see we have some pretty clear levels to trade off of, right around that 11.30 zone; 11.30 resistance, 11.30 resistance. So what I want to see from Hut 8 ( NASDAQ: HUT ) is a breakthrough, 11.30 coming on higher than average volume.
As it stands right now the stock is trading beautifully, it’s just kind of bubbling underneath resistance. As long as it’s able to hold above all of these moving averages, specifically the 8-day exponential period moving average, I think the stock is just in a healthy consolidation. So I think it’s worth keeping an eye on. And definitely, you will want to set an alert right around that 11.30 area and watch for a strong move coming on volume.
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