DJT: Heavy Volume at Major Monthly Support Has My Attention

 

I’d like to talk about a trade I’m currently stalking, one that has been quietly working its way onto my radar. On the right side of the chart above is a monthly chart of DJT, and the first thing that jumps out at me is that we’ve just tested major monthly support. This is an area that has mattered in the past, and history shows us that on three prior occasions, price rallied sharply after testing this same zone. That alone is enough to make me pay attention.

What really adds weight to this level, however, is volume. December printed the heaviest monthly volume we’ve seen in the past year, and importantly, DJT managed to close the month positive. When I see heavy volume coming in at a long-term support level and price refuses to break down, I start thinking in terms of accumulation rather than distribution. That combination of support and volume is not something I ignore.

Now let’s zoom in to the 60-minute timeframe, where the SPY is plotted in the lower pane for comparison. This is where things get even more interesting. On Wednesday, DJT began to diverge from the SPY, as highlighted at points A and B. While the broader market was weakening, DJT held firm and even pushed higher. To me, this is an early sign of relative strength, suggesting that buyers are stepping in ahead of the market.

From a structural standpoint, DJT has also broken its downtrend line on this timeframe. That’s a meaningful development. If this holds, we may be in the process of forming the first higher low of a new short-term uptrend. When structure starts to improve at the same time relative strength appears, I take notice.

When I put all of this together, heavy volume at major monthly support, improving structure on the 60-minute chart, and early signs of relative strength, we start to see the makings of a potential long setup. For me, I’ll be watching Wednesday’s high at 13.80 as a possible long entry trigger.

This is not a recommendation. It’s simply what I’m watching and how I’m thinking about it. DJT is worth keeping on your radar.

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