Hot zone alert - April 1 2025
Your weekly guide to the the most promising trade setups in stocks, crypto, and currencies
Hey everyone,
First off, Happy April Fools—and an early Happy Liberation Day too! Though frankly, we’re not quite sure which one will end up as the bigger prank this year.
Markets lately have felt like one long, elaborate April Fools gag.
At this point, it’s safe to assume that most of the bounces you’ll see are short-lived jokes.
It’s a sell the rip kind of environment. And below are some setups you could ride.
New here? Welcome to Zone Alerts.
This is where we highlight stocks that are approaching key support and resistance zones and analyze where the action might lead.
These alerts help you zero in on high-potential setups while keeping risk management in check.
If you want to get notified whenever a new one drops, subscribe to this newsletter!
What’s in this issue:
• This week’s three new hot zones
• What are zones?
Here’s what our zone algo picked up for you this week:
Sarepta Therapeutics, Inc. (SRPT)
Healthcare • Biotechnology • USA • NASD
After the stock’s brutal 20+% gap down in mid-March, you’d think most of the bad news would’ve already been priced into SRPT.
But its future had just gotten a bit murkier. A high-ranking FDA official—a champion of gene therapies and vaccines—just stepped down. And for a biotech company, that’s not exactly reassuring.
The silver lining (though maybe not for SRPT holders) is that yesterday’s 9.3% plunge has brought the stock all the way back to a key zone from September 2016.
It’s a zone that has not seen a lot of action recently, but in the past has held its ground respectably against retests.
With RSI having sunk again into oversold levels, a short-term bounce—potentially enough to fill yesterday’s gap—is now on the table. About a 10% move, if it plays out.
But if bearish sentiment ends up becoming too overwhelming, the current zone could give way. In that case, SRPT could come tumbling 12% down toward the October 2013 zone (or even further).
Plains GP Holdings LP (PAGP)
Energy • Oil & Gas Midstream • USA • NASD
For two months now, PAGP has been knocking on the door of its May 2016 zone, trying to reclaim pre-pandemic prices. And for two months, PAGP has been failing.
What’s worse, each retest has been weaker than the last. Volume is drying up, and price action has revealed lower highs and lower lows.
At the moment, PAGP looks to be bouncing off resistance, in the early stages of a possible retrace.
If this continues, we could soon see it heading back down to its February 2018 support zone—a potential 6-7.5% move from here.
Cirrus Logic, Inc. (CRUS)
Technology • Semiconductors • USA • NASD
Since its failed breakout attempt in early February, CRUS has been on a rocky road—lower highs, fading volume, likely headed lower.
But there’s an argument to be made that the stock could find a second wind.
See, we also covered CRUS in our January 28 newsletter—when it was pretty much in a similar position.
Consistently lower highs, a near-breakdown from the March 2023 zone, but pulling off a mid-day recovery.
That alert resulted in a 12-13% gain for subscribers who jumped in on the play.
Yesterday, we saw something familiar—the stock nearly breaking down once again. It grazed its December 2021 zone before making another recovery, closing still within the zone.
If history repeats, CRUS could stage a comeback. Going long here could net an 8-11% upside, with the February 2023 zone again as the potential target.
But if there truly is no more fight left in CRUS, that’s fine too. Setting your stop below the zone would only set you back around 2.5-3%.
WTF are Zones, anyway?
Zones are key price levels where the market has reacted strongly in the past—such as sharp reversals or sudden swings.
They’re areas where actual supply and demand met in the past, and likely will meet again.
“Why are these significant?”
Well, it all comes down to three key principles. We like to call them The Principles of:
When I Dip, You Dip, We Dip (aka psychology)
Traders are aware that others are watching these levels (zones) too. With everybody paying attention, this creates a self-fulfilling prophecy where everybody acts in anticipation of everybody else’s actions.
Markets Gonna Market ¯\_(ツ)_/¯ (aka technical factors)
If the first price rejection at the top of a zone was violent, it’s likely that buyers who entered at that level are now holding losses.
But with each retest, the rejection weakens, as there are fewer buyers remaining underwater. This weakens that resistance (or support for all you short-sellers), and could eventually lead to a break through.
Killer Whales (aka institutional plays)
Big players need liquidity in order to place massive orders without moving the market against themselves. So they wait for these zones, knowing a lot of us small fry (retail traders) will come to play.
This allows them to buy low or sell high without causing a lot of waves.
But remember: Zones are NOT guarantees but rather regions of increased probability for market moves. So always, ALWAYS use proper risk management.
Trading Places: Launch coming soon!
Stop obsessively refreshing your charts like it’s your ex’s Instagram.
By combining historical patterns with real-time market data, Trading Places identifies zones and assigns probabilities to each one—helping traders spot potential plays with higher chances of success.
It automates all of the curation, chart-plotting, and alerting for you, so you can actually have a life (or at least pretend to)!
Stay tuned!
Disclaimer: This isn't financial advice. This shouldn’t be news to you.