Hot zone alert - June 10 2025
Your weekly guide to the the most promising trade setups in the stock market
GM friends,
Hope everyone’s having a great week.
First off, just one minor update to the Trading Places platform: now that we’ve got a bunch more folks coming in and using the tool regularly, we’ve enabled savable layouts in Chart view. That way, you don’t have to redo your drawings and annotations every time you revisit your zone trading setups.
And speaking of zone trade setups, we’ve got three new ones for you right now.
Let’s dive straight in.
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 weekly 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?
Btw, you can always double-check our zone play analysis by heading over to the app and exploring the Scanner, Hot Picks, and Chart features for yourself. It’s free!
Pinterest Inc. (PINS)
Communication Services • Internet Content & Information • USA • NYSE
We oughta be making Pinterest boards out of PINS because this setup is looking mighty beautiful to us.
Even though the stock is currently already a few ticks above the December 2021 zone, the lack of a convincing breakout (so far) tells us that it’s still technically “at” the zone—still “attempting” a penetration.
But since April 2024, the only way this resistance zone has been broken was via a big, likely news-driven gap up. Every other attempt has failed.
Right now, we think it’s gonna be more of the same.
Volume is looking decidedly meh, and RSI is showing hints of a bearish divergence… not to mention it’s already at 72.
If this retest falls flat yet again, the drop back to the January 2022 support zone could potentially yield around 8%.
Wingstop Inc.
Consumer Cyclical • Restaurants • USA • NASD
WING’s recent multi-day win streak has come to a screeching halt courtesy of its March 4, 2024 zone.
As a resistance, this zone’s been quite remarkable—registering more bounces than penetrations over its lifetime.
That makes this a tough hurdle for WING’s rally—because while the stock has shown it can sustain long periods of high RSI, this will be the first time (in a while) that it will do so while also facing a key resistance.
And while this recent rally has looked strong, the latter part of it had barely any volume behind it.
If it does get rejected off the zone again, our first potential target is the March 19, 2024 support zone, about 13% down.
Edison International (EIX)
Utilities • Utilities - Regulated Electric • USA • NYSE
EIX’s April 2013 zone has held as a support since 2020 (or since 2014, if we ignore COVID and that one day in November 2018).
In more recent news, it also stopped the stock from digging an even deeper hole back in early February—triggering a 20% rally.
Now—after yesterday’s -8% slide—EIX is once again retesting this same support zone, and doing so with a borderline-oversold RSI.
If this mirrors what happened on April 30 (massive red candle + huge volume spike), we could be looking at another promising bounce.
A potential move back up to the April 2014 zone could offer an upside of around 12-18%.
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.