Hot zone alert - May 29 2025
Your weekly guide to the the most promising trade setups in the stock market
Hey everyone,
So today’s a big day for us.
We just launched on Product Hunt and BetaList—two platforms that allow cool new stuff (like our online tool) to reach a wider audience of early adopters (like yourselves).
We know some of you might prefer to gatekeep this. And we can’t blame you—winning consistently in the market is a pretty nice flex.
But we’d really appreciate your support today to get our launch higher up the charts.
If you’ve ever saved time trade prepping with our Zone Scanner, caught a clutch setup off Hot Picks, or even just chuckled at one of our Zone Recaps or Alerts…
A quick comment or upvote from you would help us out big time!
So if you can, please consider checking out our listings:
Product Hunt | BetaList
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Thank you for rolling with us from the start!
Now onto what you actually came here for… our latest zone alerts—
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!
Eagle Materials Inc. (EXP)
Basic Materials • Building Materials • USA • NYSE
The December 2023 zone has been quite the price magnet for EXP this year. After catching a falling knife earlier in March, it hasn’t allowed the stock to drift too far away.
This is actually a good example of how a strong, well-established zone influences price action—when many traders are camping around a proven level, price tends to hover and bounce there repeatedly, as buyers and sellers duke it out.
Right now, EXP is retesting that same December 2023 zone—a key zone that’s technically a “virgin” support (meaning it’s never been penetrated as a support).
Although that red candle (and the accompanying volume) from yesterday is concerning, it’s roughly similar to what we saw on April 8—and even that offered a 10+% rebound.
Moreover, RSI is currently at 34, bordering oversold.
If the zone manages to hold off this penetration attempt in the next few days, we could see another bounce from EXP—with the trip up toward the July 2024 zone offering a potential upside of 15-20%.
Alnylam Pharmaceuticals Inc. (ALNY)
Healthcare • Biotechnology • USA • NASD
One of the biggest advantages zones have over traditional S/R lines is that they take into account real-world volatility.
And ALNY is a perfect case in point.
Although the stock did not technically “hit” the October 2024 resistance zone, our algo still registered a bounce:
Which means an ALNY zone play could again be… uh… in play.
The stock’s most recent rally, although explosive, had a weaker volume vs. the two that came before it (specifically the ones in October 2024 and March 2025)—so if you were hoping for an upward penetration, this isn’t really confidence-inspiring.
RSI also hit near-overbought levels a few days ago—another sign the stock might need to cool off before making another run.
If the rejection holds, our first target for this setup is the September 2024 support zone—around 14% down.
BWX Technologies Inc.
Industrials • Aerospace & Defense • USA • NYSE
This alert came fresh out of today’s Hot Picks - Extreme Conditions.
(If you haven’t explored it yet, Hot Picks is a feature inside the Trading Places platform that highlights the most actionable setups, based on our favorite—and most profitable—backtested presets.)
There isn’t really a lot to unpack hare.
BWXT has been on an absolute tear—up nearly 50% since April, capped off by a near-vertical ascent in the past few days.
But right now, it’s smacked right against the October 2024 resistance zone, with a severely overbought RSI of 78. That’s even higher than the last time it tested this level (which, for the record, resulted in a 25% drop).
Now, you don’t need us to tell you that meteoric runs like this are hardly sustainable.
If it bounces again, a move back down to the May 2024 support zone could be quite profitable—a 21% downside.
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.