Take a look at these five stocks that Robinhood traders piled into over the last 24 hours.

 

 

There’s a pattern with these top five additions to Robinhood accounts… 

They’re momentum stocks that had a large move.

That signals to me there’s a lot of fear of missing out (FOMO) and traders are just chasing action.

If I know anything about momentum stocks, it’s that they typically follow patterns, and I’ve noticed these new traders aren’t respecting levels.

I want to show you why it’s important to respect levels, and the one pattern I believe is powerful when it comes to momentum stocks…

And reveal three hot stocks to keep an eye on.

 

Why Momentum Traders Should Keep This Tool Handy

 

There’s one tool I love to use after momentum stocks make a large move… and I believe it’s a solution for chasing FOMO.

You see, after a stock has a massive move, it typically pulls back and takes a breather, before it retraces that move and tries to retest a high.

The Fibonacci retracement tool helps with identifying key support levels, and where it may be advantageous to start looking for entries.

How does it work?

I believe the best way is to learn through examples, and you’re in luck.

I’ve identified three stocks in which I believe the Fibonacci retracement comes into play.

 

Three Hot Stocks To Keep An Eye On

 

To me, patterns are nothing more than a visual of where traders are making moves. If buyers overwhelm the sellers at a specific level, that’s an area of support and the stock should bounce from there.

On the flip side, if sellers outnumber buyers at a specific price level, it would be considered a resistance level. Consequently, the price would fall.

Let me show you with one stock on my radar.

 

RumbleOn Inc. (RMBL)

Here’s what I sent out to subscribers about RMBL.

For RMBL, I’m interested if it’s above $21, but technically it’s in play above $19, but for today, I’m looking for price action trading at or above $21 to indicate to me it might fire long.

 

 

Notice how the stock tried to stay below the $20 level and quickly popped right back up. That just so happens to be right around a key Fibonacci retracement level.

Once the stock retraced and got above that, I established a long position… and if the buyers start to step in and demand picks up, I wouldn’t be surprised if RMBL makes a move higher.

You see, while many traders would try to chase the stock after it made a move from about $10 to $38.82… it’s important to be patient and identify key levels.

I’m sure there were some that bought the high and lost 50% real quick.

Next up, take a look at Immuron (IMRN).

 

Immuron Ltd. (IMRN)

For IMRN technically above $12 and it’s in play, but for this morning I want to see it above $13.50 to consider going for that squeeze. 

 

 

Again, the stock held a key Fibonacci retracement level right around $12.

I also established a position in IMRN, as I believe the demand can pick up for the stock and there’s tremendous upside potential.

With this trade, I wouldn’t be surprised if it gets to the $15 level.

Last, but not least, there’s Brightcove (BCOV).

 

Brightcove Inc. (BCOV)

 

 

As you can see, BCOV is right around key Fibonacci retracement levels at $10.62 and $11.27.

If those levels hold, and there’s demand for the stock… I wouldn’t be surprised if it tries to retest its recent high at $13.36.

As you can see, there’s no need to let emotions run your trading… and patterns can be helpful.

If you’re able to identify these setups, I believe it can make trading easier because you can develop trade plans and not chase stocks.

If you want to learn how I use patterns and am able to trade on a part-time schedule, then check out this important training session.

You’ll learn the same patterns I use to identify momentum stocks BEFORE they move…

And why my strategy is so darn effective when it comes to hunting down momentum stocks.

Register now.

 

 

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