Recapping past zones (28 Feb 2025)
A follow-up to our weekly zone alerts
Hey everyone, hope y’all are hanging in there.
Welcome to the latest edition of Zone Updates—where we take a look back at some of the stocks we’ve flagged in recent weeks, and see how price action have progressed since.
We know this selloff has been brutal. But if anyone’s rejoicing about all this craziness, it’s subscribers who have been keeping up with our Short alerts.
And we’re covering a few of those today. Let’s get right to it.
In case you’re new here, each week we highlight stocks nearing or entering Hot Zones, i.e. key levels on the charts with great risk-reward setups. Stay tuned and subscribe to get these alerts before anyone else!
Check out this week’s hot zones:
Qualcomm, Inc. (QCOM)
Technology • Semiconductors • USA • NASD
Zone alert: Feb 4, 2025
Sometimes, the way stocks act around zones is so predictable, it almost feels like cheating.
This gimme of a zone play involved QCOM’s March 2024 resistance and November 2020 support—two zones that have been locked in a six-month-long game of air hockey.
When our scanner picked it up, QCOM was fresh off another bounce from resistance, and we figured... where else would it go?
Well it didn’t immediately get there. As you can see, the March 2024 zone got a couple more hits in before the drop actually began.
But as of yesterday’s close, QCOM has landed right back at its usual support—a 9.3% drop from when the alert was made.
And for those who missed this move, maybe give it a few days… the support zone’s at bat again, after all.
Tesla Inc. (TSLA)
Consumer Cyclical • Auto Manufacturers • USA • NASD
Zone alert: Feb 18, 2025
Technically, our TSLA alert came long before our February 18 newsletter—in the form of our CEO hijacking our 𝕏 account to spam TSLA posts.
But let’s just focus on the actual zone alert.
When we last saw TSLA, it was recovering at its November 11 2024 zone, trading around $355.
(The stock actually just broke below this zone just four days prior, taking a very quick 7% dip—also an alert we gave in our February 11 newsletter).
We noted that if TSLA didn’t penetrate $360, we’d stand bravely by our boss’s repeated $314 claims.
As you’re all well aware, TSLA underwent is still undergoing an epic free fall.
It hit $314 (for an 8.5% gain if you locked in your profits here)…
then almost immediately blew past it, heading straight to the April 2022 zone.
That’s a 20.8% gain if you spotted that the selloff still had momentum—something we also covered in our “How to Trade Zones” educational newsletter.
Apple Inc. (AAPL)
Technology • Consumer Electronics • USA • NASD
Zone alert: Feb 25, 2025
AAPL was at a pivotal point when our zone scanner flagged it.
It was at a zone that had recently bitchslapped its attempt at reclaiming ATH prices…
And—being one of the Mag7—it was also at the mercy of Nvidia earnings, which were due the next day.
We said that if the zone held, the stock could slide down to its June 2024 zone. However, if King Jensen’s report managed to resuscitate the market, AAPL could get swept up and a breakout could be possible.
Well, a breakout attempt actually occurred—even before the NVDA report… but it didn’t last long.
It closed the day still below the zone, and was promptly followed by subsequent red days. As of writing, the selling hasn’t stopped.
AAPL is currently at $236 (even hitting a low of $230), meaning it’s down by about 4% since the alert.
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.
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Stay tuned!
Disclaimer: This isn't financial advice. This shouldn’t be news to you.