The Top Stock I'm Watching Tomorrow | Investing 101

TL;DR

The top stock Ricky is watching tomorrow is FRAC, provided it holds support near $13.50 and begins showing a reversal instead of continuing lower. He identifies resistance near $15, estimates about 11% potential profit, and compares FRAC’s movement with the /ZL futures chart for additional confirmation. Read on for his entry conditions, chart observations, profit target, and risk-management rules.

Transcript

what is going on everyone its Ricky what type of solutions hope you guys are all having an amazing well Thursday night I'm going to keep it pretty simple I just have one breakdown that I wanted to share some correlation that I saw when it came down to a specific future itself and how that correlates over to the specific stock that it is that I'm in... Read More

Key Insights

• ❓ Ricky's analysis focuses on the correlation between the futures contract /zl and the stock frac.
• 🛀 The horizontal pattern of frac shows potential for a recovery and a breakout, but confirmation and support levels are essential.
• ❓ Understanding the correlation between futures and stocks can provide additional insights into potential trading opportunities.
• ✋ Ricky advises having a trading plan in place, including entry, exit, and stop-loss levels.
• 👯 Traders should not trade solely based on other people's opinions and should always conduct their own analysis.
• 💨 Ricky emphasizes the importance of locking in profits and not getting carried away by emotions when trading.
• ❓ The overall direction and movement of futures contracts can provide clues about the potential movement of related stocks.

Questions & Answers

Q: What is the top stock Ricky is watching tomorrow?

Ricky is watching ticker symbol FRAC. He considers it attractive only if it holds around $13.50 and starts showing signs of a reversal rather than continuing to make lower lows.

Q: What are the support and resistance levels for FRAC?

Ricky identifies support at approximately $13.50 and resistance at $15. He uses these levels to frame the possible trade and determine whether FRAC is recovering or still turning downward.

Q: What is the estimated profit potential for FRAC?

Ricky estimates about 11% potential profit from an entry near $13.50 to resistance around $15. He also stresses locking in profits instead of assuming the price will continue rising.

Q: What conditions would make Ricky consider entering FRAC?

He wants FRAC to hold above $13.50 and begin showing a reversal pattern. He also wants the relevant indicator to stop acting as resistance and begin acting as support before considering the setup attractive.

Q: What would cause Ricky to avoid taking a position in FRAC?

Ricky says he probably will not enter if FRAC continues making lower lows and trades between the middle and bottom VWAP. He does not want to invest while the stock is actively trending downward.

Q: What chart pattern does Ricky see in FRAC?

He describes FRAC as having a horizontal pattern, historically around $14 support and $16 resistance. On the 180-day chart, he also sees an upward staircase pattern, although the stock experienced a significant sell-off after pushing higher.

Q: What correlation does Ricky observe between FRAC and /ZL futures?

Ricky compares FRAC’s reversals, uptrends, and consolidation periods with similar movements on the /ZL futures chart. He notes comparable turning points around 2/5–2/19, 4/9–4/16, and 6/7–6/11, using the futures movement as added insight into FRAC’s possible direction.

Q: What risk-management advice does Ricky give traders?

Ricky says traders should not act solely on another person’s opinion and should always have their own plan. That plan should define the entry, exit, and stop-loss, while also accounting for when to lock in profits.

Summary & Key Takeaways

• Ricky shares his observation of a correlation between a specific futures contract and a related stock.

• He highlights the importance of having a trading plan and not relying solely on other people's opinions.

• Ricky discusses a specific stock, ticker symbol frac, and offers a breakdown of its support, resistance, and potential profit.