Hot zone alert - April 15 2025
Your weekly guide to the the most promising trade setups in stocks, crypto, and currencies
Hey there, folks—
We’re still on shaky ground, but talks of possible delays to tariffs have thankfully given us a little bit of market “sanity”…
So take advantage if you can… while you can. We don’t know how long this lasts.
Here’s a new batch of hot zones to help get you started. Let’s go.
The Trading Places platform is live! We’ll be inviting more beta testers soon—so be sure to keep an eye on your email’s Promotions tab this week.
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.
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:
Agilent Technologies Inc (A)
Healthcare • Diagnostics & Research • USA • NYSE
After four failed attempts to break past its March 2024 zone, A’s stock price took a brutal 37% dive.
But just last week, it appears to have finally found its footing—when its July 2020 zone held firm and acted as a double-bottom support.
That bounce sent the stock up more than 8% from the bottom of the zone.
Right now, it’s hovering around $105 and facing the October 2020 resistance zone ($106-109). Clearing that could confirm a bigger reversal.
If it manages to do so, the next target could be set at the January 2021 zone, for a potential upside of 14% or more.
Ross Stores, Inc. (ROST)
Consumer Cyclical • Apparel Retail • USA • NASD
ROST had a relatively good past few weeks—it’s one of the few stocks to not get too obliterated by the April 2 tariffs, and had successfully rebounded off its very strong January 2020 zone.
Right now, it’s looking poised to push upwards through the next one, which is the one from January 2024.
You might be thinking, “It’s already above the zone—isn’t that already a penetration?”
Well actually, not quite.
Note the lack of the ⚡ symbol in the chart below.
This means the algo hasn’t confirmed a true penetration yet.
In ROST’s case, we still need a confirmation to know where we’re going.
So if this is indeed a breakout, the move up to the February 2024 zone could mean another 6+% gain.
But, as you can see, the stock’s RSI is creeping toward overbought territory, and volume has been tapering the last few days.
This could still turn out to be a false breakout, which means it would soon be heading back down to support.
It’s a promising short setup if ever—good for a potential 10-13% on the downside.
Quanta Services, Inc. (PWR)
Industrials • Engineering & Construction • USA • NYSE
Lately, PWR has been bouncing up and down between its two August 2024 zones—the August 5 support and the August 29 resistance.
That’s a tidy 16-20% range swing traders have been enjoying for the past month.
As of writing, the stock is again sitting right below resistance.
With buying volume fading, and the last drop from resistance also happening around ~55 RSI—there’s little reason to think PWR is about to break the pattern soon.
If the trend holds, riding the trip back down toward the August 5 zone could offer around 15% in gains.
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.