Hot zone alert - June 17 2025
Your weekly guide to the the most promising trade setups in the stock market
Here we go again.
Between Bibi still threatening to target Iran’s supreme leader and Donnie calling for a city-wide exodus in Tehran… it looks like the Middle East’s up for some rough goings yet again.
Thankfully though, the markets have stayed hella resilient to A LOT of our recent headlines. Which means—as long as we don’t jinx it—our zones are still very much in play.
And we’ve got three new ones to walk you through this week.
Let’s get to it.
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!
Bentley Systems Inc. (BSY)
Technology • Software - Application • USA • NASD
Despite the ever-present cloud that is the Trump tariff comeback, BSY has been on a pretty good roll—recording a more than 35% gain since its post-Liberation Day bottoms.
But currently, it’s hit a wall.
Its February 2021 zone—a resistance that has not been penetrated convincingly in a year—is standing between BSY and a potential push toward its 2024 highs.
And frankly, it could go either way right now.
One one hand, the two most recent retests of the zone have come with stronger volume than all previous attempts, suggesting momentum is building.
On the other, RSI during the June retests is notably higher—signaling possible exhaustion soon. Add to that a subtle bearish divergence between the recent peaks.
So what now?
Well, we kinda need to wait for confirmation.
If BSY convincingly breaks above in the coming days—maybe around $52 or so—the path to the July 2021 zone opens up for a potential 12% gain.
But if the zone holds off another attempt, then a short down to the December 2021 zone could be the play for around 8% downside.
Franklin Resources, Inc. (BEN)
Financial • Asset Management • USA • NYSE
This BEN setup is just about as simple as they come.
The stock is once again retesting its June 2022 resistance zone. It’s a zone that BEN has struggled to get past since August of last year.
And like previous attempts, it’s doing so with weak volume and a high RSI. This time though, it’s come with a bearish divergence kicker.
So if it ain’t obvious yet, it means BEN is looking like a good bounce candidate.
Archer Daniels Midland Co. (ADM)
Consumer Defensive • Farm Products • USA • NYSE
This near-vertical rally you’re seeing is ADM reacting to the EPA’s recent announcement regarding new biofuel blending requirements for 2026.
In just a few days, RSI shot up from a calm 53 to screaming 76—the highest it’s been in nearly two years.
Now, we’re usually quick to say that rallies like this are never sustainable.
But given the big headlines and the somewhat solid volume behind it… maybe it could—but probably not just yet.
For now, we’re still leaning toward a bounce off resistance—if only to cool off its red-hot RSI.
If that happens, a potential short target could be the bottom of its September 2014 zone (which also lines up with the peaks of its past swings) for a quick 6%.
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!
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Stay tuned!
Disclaimer: This isn't financial advice. This shouldn’t be news to you.