Hot zone alert - June 6 2025
Your weekly guide to the the most promising trade setups in the stock market
Hi folks,
First off, huge thanks to everyone who supported our launch on Product Hunt and BetaList.
And to everyone who just got here through those platforms, welcome to the community! Perfect timing too—because just when we thought the drama has cooled off post-TACO rollbacks… turns out, we’ve already got a few new things to worry about.
Thankfully, you’ve just found a secret weapon against all this chaos: Zones.
And as you’ll soon see, they’re pretty good for catching some emotionless, high-conviction setups, no matter what’s going on in and around the market.
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!
Tesla Inc. (TSLA)
Consumer Cyclical • Auto Manufacturers • USA • NASD
Yes, we know. We just said “emotionless” setups. How could TSLA be in here when it’s the literal epicenter of all this craziness?
Well, just because a stock’s caught in the turmoil doesn’t mean we can’t use zones to make sense of it.
Take yesterday’s price action. Despite the epic blowout between Elon and Trump, which could’ve sent the stock crashing harder throughout the day—that long tail suggests that buyers knew that the $271-278 range (a.k.a. the April 2022 zone) was a key level, and promptly stepped in.
As of writing—just as the market opened—TSLA is now 4.8% up.
With RSI still very low and rumors of a possible “talk” between the two ex-BFFs swirling hard today, there’s a chance this bounce keeps going—back up to the February 2025 zone.
If it does, that’s still a potential 9+% move, even though we’re late.
Voya Financial Inc. (VOYA)
Financial • Financial Conglomerates • USA • NYSE
VOYA is currently sitting on its March 2021 zone—a support that has not* been penetrated since 2023.
*not counting the black swan event-induced zone breakdown due to the Liberation Day tariffs
After recovering from said penetration in early May, the stock has not really done much. It’s been lingering around the zone without any real indication where it’s headed.
But zooming out a bit, you’ll see that there was also a long consolidation around this same level back in October 2023.
That resulted in a ~14% rally up to its January 2022 zone.
Right now, volume and RSI is looking roughly similar to what we saw back then.
So considering that the stock’s P/E is stellar relative to its 20-year history, its industry peers, and the US market in general—not to mention that the March 2021 zone is historically very strong (or did we say that already?)—it’s fair to say another bounce off support is on the table.
A run back up to the January 2022 resistance could yield upside of around 8-14%.
Mid-America Apartment Communities, Inc. (MAA)
Real Estate • REIT - Residential • USA • NYSE
This one’s a pretty textbook zone play.
MAA has been pinballing between its February 2020 support and June 2021 resistance since late last year—delivering swings of around 9% almost every time.
True to form, MAA is back retesting its support zone again, with RSI nearing oversold levels.
At this point, it’d already be blatant spoonfeeding if we still have to spell out what we think happens next.
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.