Recapping past zones (Mar 7 2025)
A follow-up to our weekly zone alerts
How’s it going friends?
Hello again and welcome to this week’s Zone Updates. A series where we look back at the stocks we’ve alerted in previous newsletters, and show you how their prices moved after interacting with key zones.
So… some week we’ve been having, huh? Indices are tea-bagging correction territory, economic growth can’t seem to get it up, and we’re constantly getting edged by all these tariff/retaliatory tariff business…
And yet, no one can say for sure if bulls are about to stage a comeback, or if bears have truly taken over.
Heck, some people are even dusting off their ‘kangaroo market’ jokes again.
But if you’ve been subscribed here for a while, you already know—it ain’t all bad. After all…
And below are some bonus alerts from our 𝕏 account that show how zones love these up-and-down motions.
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:
Meta Platforms Inc. (META)
Communication Services • Internet Content & Information • USA • NASD
Zone alert: January 10, 2025
“META with a clean bounce off its Oct 7 zone after nearly plowing through it earlier this morning” -@tradingplacesai on 𝕏
When our zone scanner flagged META earlier in the year, it was coming off a post-high correction.
It had just broken through the October 7 2024 zone ($601-603), and looked set to retest its previous high.
But sentiment wasn’t quite there yet. Buyers hesitated, and META was quickly pushed back down to support.
Then, on January 10, just when it seemed META was about to break lower, it rallied—ending the day with a clean bounce off the zone.
To us, this retest was a sign that the uptrend wasn’t over.
After a fake breakdown on January 14th (which, granted, could’ve shaken anyone out), META proceeded to move up and soon captured a new all-time high.
And then another. And then another. And then another…
That last bounce off its zone eventually materialized into that wild 20-day winning streak META had recently.
If you managed to ride this till the end (i.e. you didn’t get caught by that one-day bull trap), it would’ve netted you an impressive 20% in just over a month.
PepsiCo Inc. (PEP)
Consumer Defensive • Beverages - Non-Alcoholic • USA • NASD
Zone alert: February 5, 2025
“PEP could be interesting if the Sept 2019 zone holds 👀” -@tradingplacesai on 𝕏
We’ll admit—we were a few days early on this one.
PEP was in no man’s land back then. It had just pierced through its February 2020 support zone—looking like it was ready to dip back into the September 2019 zone.
And because PEP had done the same thing just a month prior—leading to about an 8% gain—this setup looked appealing enough.
But, the stock had other plans.
Instead of continuing lower, it immediately reclaimed the February 2020 zone the next day… and just hovered there for a couple weeks.
Then, on February 14, our play once again reared its head.
It broke below $144, spent the next day retesting $142, and finally bounced.
It’s currently up 7.8% since our premature alert—but if you exited the position earlier this week (March 4th, when it got close to the top of the July 2021 zone), you would’ve locked in as much as 11+%.
Iron Mountain Inc. (IRM)
Real Estate • REIT - Specialty • USA • NYSE
Zone alert: February 15, 2025
“IRM broke decisively below its Dec 2024 zone yesterday. Good chance this slides all the way down to 90 if it holds. 📉” -@tradingplacesai on 𝕏
Anyone holding IRM on February 14th probably ended up being bad Valentine’s dates. The stock closed the day with a decisive break below its December 19 2024 support zone.
Considering how resilient it's been in recent retests— fending off sellers multiple times—we figured a drop to the zone below was inevitable.
And drop, it did. Just five days later, it briefly tapped the June 2024 zone. Closing here would've yielded a decent 5.7%.
Also of note is that breakdown from the June 2024 zone.
It only took all of three days to deliver an 8+% move. Easy work.
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.