@kenzochan takes the spotlight for this week’s featured trader! A member since 2018, Kenzo has been actively navigating the markets and is one of the few that have profited from $NOW.
One of the recent outliers, $NOW is up by almost around 70% just for December. However, the rise was a fast and volatile one. To fully take advantage of this kind of move, you’d need to make swift decisions. @kenzochan’s analysis fully shows how diving into the intraday chart can help aid your trades.
TECHNICALS OF THE TRADE
On the daily timeframe, $NOW only took a few days to consolidate. This would’ve thrown some traders off as prices didn’t even reach the 20-day moving average. Since momentum was very strong, it would’ve been easier to find continuation patterns within the smaller timeframes. @kenzochan did so and found trend following opportunity.
It’s important to note that he stuck with using the 15m timeframe to manage the trade. The initial plan was based on that timeframe. Hence, it would make sense to use that timeframe as well to guide your executions.
Here we can see that sticking to the 15m timeframe allowed @kenzochan to act swiftly. Especially in a volatile market, having the capability to make fast decisions in itself can be an edge. By using the moving averages in a lower timeframe for trims and stops, he can slice positions faster compared to other traders.
Of course, the longer-term time frames are still important as they provide a fuller picture of how supply and demand are playing out in the market. By combining the best of both short and long-term timeframes, Kenzo was able to trim his position during the retracement, while still keeping a portion for the bigger move!
FUNDAMENTALS OF THE TRADE
The recent bullish sentiment in $NOW came after positive developments were reported. With the company securing a fund grant to increase its 5g capabilities and network coverage, it can compete better against telco providers.
Another factor could’ve been the troubles $TEL is facing. A major competitor in the industry, PLDT is facing a lot of backlashes after they have been reported to have overspent the past couple of years. With the budget overrun exceeding their threshold by a large margin, authorities are currently investigating the controversy. If PLDT were to lose its grasp on some market share, other competitors might stand to benefit. This would include $NOW as it tries to get a bigger slice of the market.
WHAT SHOULD BE MY NEXT MOVE
Currently, $NOW is still exhibiting strong signs of momentum. Holders of the stock would most likely look to hold on as long as they can. However, it wouldn’t be advisable to chase the stock if you don’t have a pre-existing base.
Ideally you’d want to wait for set-ups to occur first before looking to make an entry. Keep in mind as well that the next resistances $NOW would need to break next are 2.5, 3.15, and 5.25. Don’t give in to FOMO and make sure to only make a move if a good risk-reward trade comes.
Once again, KUDOS to @kenzochan for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
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