Hot Zone alert - Mar 11 2025
Your weekly guide to the the most promising trade setups in stocks, crypto, and currencies
Hi, everyone. And congratulations on surviving that Monday.
Man, yesterday was brutal. Indices were down by at least 2%, the Mag 7 tanked by an average of 5.7%. Bitcoin dipped below 80K. X was hacked.
The market was in chaos mode, and people were going insane (though to be fair, the latter happens even when stocks are up).
So if there ever was a perfect time for a bullish zone alert, it’s today.
And as luck would have it—Tuesdays are Zone Alert days. So let’s dive right 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 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:
• Who we are
• This week’s three new hot zones
• What are zones?
But wait… who are you people and what am I doing here?”
Welcome to Trading Places.
We’re just a bunch of market nerds, quants, and posers who’ve spent years deciphering price action, identifying high-probability setups, and questioning our life choices every time a chart pattern didn’t play out as planned.
After years of refining our approach, we built a quantitative system that cuts through the BS. Our algorithm highlights key market Zones—areas on the chart where real money moves, not just speculative noise.
Think of it as an edge—scanning stocks, currencies, and crypto in real-time to pinpoint where your attention is required.
Every week, we share these insights with you. No fluff, no hype—just actionable setups backed by real market dynamics.
Here’s what our zone algo picked up for you this week:
Tesla Inc. (TSLA)
Consumer Cyclical • Auto Manufacturers • USA • NASD
If you can recall, TSLA has been the subject of a bunch of our posts from a few weeks back. It was still lingering in the mid $300s then, and we were eyeing a 10% drop to $314.
Turns out, $314 was just a quick pitstop on the way to something much worse.
Now sitting at $222, TSLA isn’t quite “at” or “near” a key zone yet—which, technically speaking, makes it a bit of a stretch for a zone alert… but we still think this deserves your attention.
You see, if there’s a zone that has any chance of catching this falling knife, it’s the February 23 2021 zone. This zone, as you can see below, has repeatedly acted as a trampoline—stopping more dips than any other TSLA zone.
Over the past four years, bounces here have led to moves ranging from 12% to as much as 90%.
So if the stock indeed manages to hit this support, watch out… because that might be the beginning of Tesla’s comeback story (again). A move back to the February 2025 could mean a potential 50+% rally.
But of course, that’s assuming there is a comeback story…
Toll Brothers Inc. (TOL)
Consumer Cyclical • Residential Construction • USA •. NYSE
The turn of the year has not been kind to TOL. Since reaching its peak in late November, the stock has been in freefall, shedding over 36%—including a brutal 24% drop in just the past six weeks.
Right now, it’s resting on its December 2023 zone—a zone that has not once been penetrated as a support.
Zooming out, you’ll also see that it’s sitting right on a key trend line from October 2022.
Add to that a bullish RSI divergence…
as well as valuations that are looking more attractive compared to its peers—and what we’ve got is a stock that’s got potential to shoot back up.
If this zone holds, our first upside target is around $120—filling the gap and yielding about 12%. But if bullish momentum picks up, a run to the January 2025 zone wouldn’t be all too surprising.
First Solar Inc. (FSLR)
Technology • Solar • USA • NASD
After a meteoric seven-month, 130% rally from November 2023 to June 2024, FSLR has now officially wiped out all of its gains—landing right back at a major support zone that dates back more than 15 years.
This isn’t just any zone. Since 2022, it’s only been breached once—and even then, the breakdown only lasted a few days before making a strong recovery.
Last week’s clean bounce and convincing confirmation candle suggests that this level could hold once again, setting up another bounce play.
If history repeats, this could be a high-probability bounce off a time-tested zone.
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.