“HLIT is currently gaping down and I’ll be looking at a fill up to $14.00.”
Gift Gaps are one of my favorite strategies in The War Room.
How they work is simple…
First, I use my AI scanner to target companies that have had a single-day, double-digit stock price move. This move could be up or down.
But no matter which direction the price goes – it triggers a “gap” in the stock. And often times, it’s a big overreaction by traders on Wall Street.
When markets overreact, the chances of a correction go up, which offers traders like you and I the chance to take advantage.
One gift gap stock chart that recently came across my scanner is Harmonic (HLIT).
As you’ll see above, HLIT is gapping down all the way below the $12 mark. This is a textbook gift gap setup.
Stocks in this “Gift Gap” sweet spot fill at an alarmingly high rate. Based on my backtested data, 25% of that gap is filled 97% of the time in just 23 days.
And the best part about trading gift gaps is it’s so simple.
My AI scanner alerts me to Gift Gap candidates that are currently within the buy zone, and it also gives me plenty of time to get in new gift gaps that are forming.
This latest HLIT chart is one of those trades, and it’s the perfect watchlist candidate as we head into Thanksgiving.
Action Plan: With HLIT gaping down, I’ll be looking for a gap up to $14 within the next 1-2 months. This should give traders plenty of time to get positioned.
HLIT is just one of the many potential trades I’m currently looking at in The War Room. It’s not uncommon for my AI scanner to identify more than 34 potential gift gap plays in one day!
So if you’d like access to all of my trades every week, I invite you to join The War Room.
