It was Friday. And I took a trade going into the close.
It was a simple setup, a dip buy off the highs that I sold after-hours for a nice single.
But the stock also had all the right ingredients for a weekend trade.
So, I actually took two positions.
A few students asked why I took the trade in the first place.
Others wanted to know why I didn’t sell when it dipped after-hours.
So, I want to go over my weekend trade because the setup is one of my favorites.
In fact, my first-ever six-figure trade was on a weekend play.
I haven’t traded with that kind of size in years.
These days, I trade with a small account because I teach students with small accounts.
And this trade didn’t end up being a huge win.
In the end, even though it gapped up, it couldn’t hold its gains.
So, I got out for a tiny win (roughly break even).
But the recipe is the same and the ingredients were there.
Again, this one had everything going for it, so take notes (and bookmark this).
It is NOT the first time we’ve seen this setup (and it WON’T be the last time).
Check it out…
The Recipe for Weekend Trade Success
Atomera Incorporated (ATOM) had a clear multi-day, multi-week breakout on Friday.
Here’s the 3-month chart…
Source: StocksToTrade
ATOM 3-month, daily candle, multi-week breakout.
The move back in February went from the $2s to the $7s.
That makes ATOM a recent supernova (always worth watching).
Friday was a first green day. And even though it was choppy, it had key support around $8.40…
Source: StocksToTrade
ATOM 4/24/26 intraday, 1-min candle, key support level.
Still, some students asked why I bought it five minutes from the close when it was off its highs.
How To Judge a Weekend Trade Setup
This might seem strange if you’re new, but this trade (and any weekend setup) can’t be judged by how much you won or lost.
Why?
Because sometimes you’re going to lose. That’s trading.
The best way to judge the setup is based on risk-to-reward.
In other words, did the trade have enough going for it to get in and hold over the weekend?
ATOM had every ingredient…
• Sector Momentum. Recognize that chip companies are hot. Whether it’s Intel Corporation (INTC) spiking 25% on Friday, or Advanced Micro Devices Inc. (AMD) … Or any other chip stock. It’s a very hot sector.
• A News Catalyst. The company announced an expanded collaboration with Synopsys Inc. (SNPS), which is a much bigger company in the semiconductor industry.
• A Breakout. Again, it was a multi-day, multi-week breakout.
• Holding Gains Going Into the Close. Yes, it was off the high of the day, but still mostly holding. Especially at that key support level.
I was able to buy just above the key support at $8.40ish.
Even though I didn’t get out right when premarket trading opened (which would have given me a big win), the setup was beautiful.
And because I knew the key levels, because, frankly, my weekend strategy is good…
Because the news was already out…
And because it was a solid risk/reward given the drop off the highs with support just below my entry.
This is a beautiful trade.
Key Takeaways from ATOM
Several students asked (even after the trade) how I throw out the numbers and analysis on a stock like ATOM.
There are three things to remember:
1. I look at basic support and resistance. A support level is a price a stock tends to stay above. A resistance level is basically the opposite. It’s a historically high level for a stock … a price that the stock had trouble breaking through in the past.
2. I’m basically a glorified history teacher. Study past charts. Unless you are brand new, you should know this. And if you ARE brand new… now you know. ATOM is a former supernova several times over. I’ve been watching and trading this stock since late 2020.
3. Study HARD! This is not rocket science. You can learn most of what you need to know in a few years. But you MUST study hard. Every. Single. Day
If you have any questions, email me at [email protected].
Cheers,
Tim SykesEditor, Tim Sykes Daily
