In today’s fast-paced trading environment, shortened trading weeks introduce unique challenges, such as lower volume and liquidity, which can significantly impact price movements. To navigate these conditions effectively, traders must adjust their strategies and mindset, shifting towards quicker, intraday-focused trades.
Top Swing Trading Opportunities This Week: Microsoft, AFRM, Mullen & GameStop
Given the market dynamics, we’ve identified three key swing trading setups that offer well-defined entry and exit points, helping traders maximize opportunities. Let’s dive into the strategies.
1. Microsoft (MSFT) – High Time Frame Breakout Setup
Microsoft (MSFT) has been on a steady recovery after a recent pullback, setting up an ideal swing trade opportunity.
Trade Plan:
- Entry Point: Look for a breakout above $376, which is the key resistance level from last week’s pivot high. A strong breakout with volume confirmation is ideal.
- Stop Loss: Place a stop at the day’s low upon entry.
- First Target: Aim for $380, where you can exit most of your position.
- Trailing Stop: As the stock moves higher, use the hourly chart’s higher lows to adjust your stop loss.
💡 Pro Tip: Set an alert at $376 to stay ready for the breakout. If the stock consolidates at this level, monitor closely for further momentum. A successful trade could extend for up to three days.
2. AFRM (Affirm) – Short-Term Trend Break Setup
Affirm (AFRM) is offering a short opportunity based on an uptrend breakdown on a lower time frame.
Trade Plan:
- Entry Point: If AFRM breaks below its uptrend on the hourly chart and stays below, initiate a short position with a stop loss set at the day’s high.
- Target Price: Aim for a decline towards $46.
- Stop Loss Management: Use the 15-minute chart or intraday VWAP to track lower highs and adjust your stop.
- Overnight Position Consideration: If the stock closes weak near $46 or lower, consider holding overnight for potential further downside, provided you’ve secured partial profits.
📌 Key Takeaway: This setup requires quick execution and active risk management to adjust stops as the trade unfolds.
3. Mullen (MULN) & GameStop (GMBL) – Reverse Split Volatility Setup
Both Mullen (MULN) and GameStop (GMBL) have undergone reverse stock splits, leading to increased price volatility—creating opportunities for traders.
Mullen (MULN) Trade Plan:
- Entry Point: Watch for a push into the $10.50–$11 range, a key supply zone.
- Breakout Potential: If the stock sustains above resistance, it may move toward $12–$13.40 (3-day VWAP).
- Short Setup: If the price fails to break resistance (confirmed by a lower high), short the stock.
- Profit-Taking Strategy: Cover half of your position near Friday’s low around $9, then trail the rest for a multi-day trade.
GameStop (GMBL) Trade Plan:
- Entry Trigger: Watch for resistance at $7.50–$8, a potential level for initiating a short trade.
- Shorting Strategy: Sell shares upon confirmation of resistance and place a stop above the intraday high.
- Profit Target: Cover half of your position near the low $6 range. If the stock remains in a downtrend, keep trailing the stop.
🔍 Why This Matters: Reverse splits often lead to dilution and volatility, making these stocks prime short candidates when key resistance levels hold.
Final Thoughts: Trade Smart in a Shortened Trading Week
With limited trading days, market liquidity can be unpredictable, requiring traders to adapt their strategies. The setups outlined above provide high-probability opportunities by focusing on key technical levels, trend structures, and defined entry-exit strategies.
- Microsoft (MSFT): A breakout trade with potential for a multi-day swing.
- AFRM (Affirm): A fast-paced short trade on trend breakdown.
- Mullen & GameStop: Shorting opportunities based on resistance from reverse splits.
Stay disciplined, manage risk with proper stop losses, and be prepared for fast market shifts. Wishing you a profitable trading week ahead!
