3 Overhyped Stocks That Could Hit a Wall This Week (July 22 2025)
Your guide to the the most promising trade setups in the market
Hey everyone!
Welcome back to Zone Alerts.
Yes, you read that right—just Zone Alerts this time.
But don’t you worry, we’re not already abandoning our Quantamental screens... but with how overextended our market has been lately, we figured we’d run it back and hammer out a quick Short alert this week.
So we dusted off our good ol’ Zone Proximity Scanner and went hunting for stocks that took full advantage of the market’s recent risk-on rally—but are now closing in on major resistance.
So if you’re one of our more impatient subscribers, this issue’s for you. Let’s get to it.
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What’s in this issue:
• High-potential opportunities
• This week’s most actionable setup
This week’s hot setups
Advanced Micro Devices Inc. (AMD)
Technology • Semiconductors • USA • NASD
AMD’s been on an absolute heater since bouncing off its August 2020 zone back in April. It’s exploded nearly 80% since then—cutting through resistance levels with barely any… er, resistance. Heck, if you squint a little, you’d swear this was NVDA circa 2024.
But right now, the setup’s looking a bit shaky for AMD. Price is about to crash into a long-term resistance zone that’s proven tricky for the stock in the past.
Technically, it also doesn’t look too good for AMD. Apart from its red-hot RSI, we’re also seeing a bigger drop-off in volume compared to earlier legs of the move.
Not exactly what you want to see if you were waiting for the breakout.
And looking under the hood, this isn’t exactly a cheap chip stock. With a P/FCF near 89x—50th percentile against its own 3-year history and 90th percentile vs. its IT peers—AMD’s riding high expectations without much valuation cushion.
So for now, we’re watching for a stallout here, with the December 2021 support zone as a potential short target.
Alphabet Inc. (GOOG)
Communication Services • Internet Content & Information • USA • NASD
GOOG’s rally has been a bit stealthier than our previous pick—but still nothing to scoff at. The stock’s climbed ~25% in under two months, and with yesterday’s strong green candle, you’d think it’s gearing up for more.
But zoom out of the chart a little bit, and this rally’s strength suddenly goes out the window. This latest run is now colliding with the same resistance zone that marked the top back in July 2024.
And—more importantly—that July 2024 zone isn’t just any resistance. It’s the right shoulder of what could be a year-long head-and-shoulders pattern.
If the stock fails to break through here, the setup implies downside toward the H&S neckline around $170—a 10–12% move.
GOOG has great fundamentals, no doubt. But even strong compounders need to cool off sometimes. This might be one of those times.
Rithm Capital Corporation (RITM)
Real Estate • REIT - Mortgage • USA • NYSE
RITM is the oddball on our list—a sleepy real estate play that’s suddenly ripped ~30% off the May lows. But that sprint has got it poking right into a heavy resistance zone from September 2024—one that it’s never managed to conquer.
Momentum looks like it’s fading fast. Volume is thinning out, and RSI has crept into overbought territory. Unless something new sparks interest, the setup looks ripe for a reversal.
With that $12 zone historically acting as a seller’s fortress, we’re looking at this as a classic momentum fade.
If that resistance holds, it’s lights out for this rally—a 10-11% move lower is well within reach.
That’s it for today’s issue of Zone Alert. We’ll be back next week with fresh setups nearing key zones.
In the meantime:
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Disclaimer: This isn't financial advice. This shouldn’t be news to you.