You can ask me questions while I’m on Money Morning LIVE at 10:30AM ET every morning.
I’d love to hear about your most pressing stock market question and which stock you want to hear about most. Click here to tell me.
I closed Monday’s Long and Short show with a quick update on the Fibonacci levels for a few cryptos, including Bitcoin and Ethereum.
I talked about their bullish outlook.
And what do you know, we’ve also got a $5 backdoor crypto play presenting itself for us Penny Hawks.
PENNY STOCK HIGHLIGHT: DGHI
Right now one of the stocks I’m focusing on is (Digihost Technology Inc: DGHI).
It’s a crypto-mining blockchain company – and we all know that crypto is all the rage right now.
The company primarily mines Bitcoin and they’ve got numerous ways to expand their operations.
LET’S GET TECHNICAL
My volume tracker picked-up a familiar shift in the trend over the last few days that is similar to other “launching pads” for this crypto-related company.
Volume dipped to relative lows as the stock is clearing a technical hurdle. Now, this is not the normal “calling all cars” type of signal that I look for, but that’s also to be expected given the recent volatility that we’ve seen in the crypto markets.
What we’re looking at today is a “testing pattern”.
That point where the market pauses as they wait to see if the stock passes a short-term technical test.
Think of it like you would the long pause and holding of the breath that you might see as the quarterback releases the ball into the endzone on a strong touchdown offensive.
That’s the pause that I’m seeing in DGHI that fits with the moment that the catch is made… and the crowd goes wild!
The last time I saw this volume pattern was in October, ahead of a strong run in the stock that was supported by… you guessed it, a bullish move in cryptocurrencies.
I’m looking for the same here.
We’re getting ahead of that volume surge and minding the overhead technicals with this recommendation, but the trade certainly fits the bill for another short-term bull run stock.
ACTION TO TAKE:
Buy DGHI for a limit of $5.60. Add a 7% trailing stop when the stock hits $6.50.
Until next time,
November 30 2021