Three Lower Highs at Gap Support: Waiting for MSOS to Reclaim $5

 

Above is a daily chart of MSOS, and as you can see, price is now well into the gap. After a sharp selloff, it was encouraging to see a green candle print today, helped along by a news story that hit the tape just before 3:00 ET. While the headline provided a spark, what really has my attention is the structure that’s forming on the chart, not the news itself.

MSOS has now put in three consecutive lower highs following that significant selloff, and all of this is happening right into gap support. This is the kind of price action I like to see. Instead of panic selling or wild volatility, the pullbacks have been relatively clean and controlled. In my experience, these orderly lower highs into a defined support area often set the stage for a meaningful reversal. I’m not interested in guessing bottoms, but I do pay attention when price starts to behave in a familiar and constructive way.

We’ve seen this movie before. A great example was back on November 20th, when a similar pattern of lower highs helped me nail the bottom. That setup didn’t feel comfortable at the time either, but the chart told a clear story for those willing to be patient and disciplined. It’s that prior context that makes this current action stand out to me.

That said, I’m not jumping the gun here. For me, confirmation matters. I’m not just looking for a break of today’s high; I want to see the $5 level reclaimed. Today’s high came in at $4.87, and yesterday’s high was $5.01. A decisive move back above $5.01 would tell me buyers are truly back in control. That’s where I’ll look to add to my long position, which I’ve been holding since the summer lows, and let the chart do the rest of the talking.

QBTS Shows Clear Relative Strength as Trend Turns Back Up

 

Today was a big day for QBTS, and the charts did a great job of telling the story. On the left, we have the daily chart, and the first thing that stands out to me is how well price respected support last month. That level was tested, buyers stepped in, and the stock held. That alone gets my attention, but what followed is even more important. We’re now seeing a clear higher low and a higher high, which tells me the intermediate trend has turned back up. When structure shifts like that, I want to be paying close attention.

Another key piece of evidence is volume. Today’s move came with a noticeable expansion in volume, which adds validity to the breakout we saw. Breakouts that occur on light volume are easy to fade, but when volume confirms the move, it suggests real participation and commitment from buyers rather than just a short-term pop.

If we shift to the 5-minute chart on the right, the relative strength in QBTS was obvious almost immediately. Right from the open, QBTS pushed higher while the SPY moved sideways. That early divergence was the first clue that this stock had its own agenda. Volume was elevated right at the open as well, reinforcing the idea that there was strong demand from the start of the session.

The relative strength became even more apparent around 10:30. When the SPY made a new low, QBTS did not follow. Instead, it put in a much higher low, which is exactly what I want to see when I’m evaluating leadership. Stocks that refuse to go down when the market is weak are often the ones that lead when the market turns.

Once QBTS broke above its intraday highs, it continued to grind higher and ultimately closed at its high. That kind of price action speaks to sustained buying interest. This is definitely a stock I’ll be keeping on my radar in the days to come.

Watching for a Bottom: CURLF Tests Gap Support in a Young Bull Market

 Well, it was another red day for the cannabis stocks, and days like this can test both patience and conviction. Above is a daily chart of CURLF, and as you can see, price is now approaching the open gap near the 2.70 level. Gaps often act like magnets, and it’s not surprising to see the stock work its way back toward that area before deciding on its next meaningful move.

What’s encouraging, at least so far, is what’s happening with volume. Over the past two sessions, volume has been declining as we test this potential support zone. To me, that suggests selling pressure may be starting to dry up. When a stock pulls back on lighter volume, it often signals that weak hands are exiting and stronger hands are beginning to take control. This is exactly the type of behavior I want to see if a durable low is going to form.

From here, I’ll be watching closely for signs that CURLF is bottoming. Relative strength is high on my list, if the stock can start to outperform the broader market or its peers even while price is still basing, that’s an important tell. I’ll also be looking for clear price based signals such as a reversal bar, a bullish engulfing pattern, or any decisive rejection of lower prices. Those are the footprints buyers tend to leave behind before a meaningful turn higher.

This pullback is the first real test in what I believe could be the early stages of a new bull market for the group. That belief hasn’t been proven yet, and the market will ultimately decide. For now, patience is key. While CURLF works through this area, other names in the space, such as TLRY which I wrote about yesterday will remain on my close watch list. Sometimes leadership rotates, and being prepared is half the battle.

Patience at Support: Watching TLRY’s First Pullback

 Above is a daily chart of TLRY, and as you can see this stock is now pulling back. I continue to view this pullback as a retracement within what I believe is a new bull market, not the start of something more sinister. In environments like this, my focus shifts from chasing strength to identifying high quality pullbacks into logical areas of support.

One level that immediately stands out on TLRY is the $10.00 to $10.70 zone. This area represents the stock’s first real test of support since the recent push higher, and first tests are often the most important. What makes this zone especially compelling is its history. You can see on the chart where this area has previously acted as both support and resistance, marked by the arrows. When former resistance turns into support, I pay attention.

Adding to the importance of this level is the fact that it lines up with the bottom of that large green candle from a few days ago. Big expansion candles often leave behind footprints, and the low of that candle becomes a reference point for big money that participated in the move. When multiple forms of support converge, it creates a level that deserves respect.

That said, I’m not interested in blindly buying just because price enters a zone. Patience is part of my edge. I want to see evidence that buyers are stepping back in. That could come in the form of bottoming tails, bullish engulfing patterns, or clear relative strength versus the market. Those signals tell me demand is asserting itself again.

Until I see that confirmation, I’m content to stay the course and keep my powder dry. Opportunities come and go, but disciplined entries at well-defined levels are what keep me on the right side of the trade over time.

Relative Strength and Compression: Why TSLA Is on My Radar

 

Above is a daily chart of TSLA, and in the lower pane I have the SPY plotted for comparison. The very first thing that jumps out at me is the clear divergence between the two. Over the past ten days, the SPY has been trending lower, making new lows along the way, while TSLA has been doing the exact opposite, grinding higher. That’s classic relative strength, and it’s something I always pay close attention to. When the broader market is under pressure but an individual stock refuses to break down, it tells me demand is present beneath the surface. Buyers are stepping in, and they’re doing so with conviction.

To me, relative strength isn’t just about outperforming on a percentage basis. It’s about behavior. When the market is weak and a stock won’t follow it lower, that’s information. In TSLA’s case, the stock has absorbed selling pressure from the broader tape and still managed to push higher. That suggests institutions may be accumulating shares, or at the very least, supply is being absorbed.

Adding to my interest is the fact that TSLA has now printed back to back inside days. The daily range is narrowing, volatility is contracting, and price is coiling. Inside days often act like a pause before the next move, and when they show up alongside relative strength, I pay even closer attention. This kind of compression can store energy, setting the stage for an expansion move.

The level I’m watching is the high of the mother candle at 495.28. A decisive break above that level could trigger a breakout and potentially carry TSLA toward the psychologically important $500 area. Whether or not that move materializes immediately, TSLA is clearly acting better than the market, and for me, that alone makes it a stock worth keeping on my radar.