Hello traders! Barrie Einarson here from Trade Ideas with today’s edition of “What Makes This Trade Great.” Let’s dive into a recent trading opportunity involving the stock symbol SERV.

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Analyzing SERV’s Recent Performance

Yesterday, I discussed SERV and its potential breakout at length in the trading room. Here’s why this trade stood out to me:

1. Key Price Level: The significant level I was eyeing was $10.26. As I analyzed the daily chart, I realized that this price point seemed crucial for SERV.
2. Historical Context: SERV started trading in 2024 after a previous company with the same symbol stopped trading in 2020. While the exact details are unclear, it seems a new company adopted the symbol and began its market journey this year.
3. Price Movement: On analyzing the candles, I noted that if SERV could take out $10.26, it had the potential to run. And run it did! I entered the trade around $10.30, and it surged to $13.79 after hours. Holding a portion overnight proved beneficial, as the stock continued its upward momentum.

The Catalyst: NVIDIA’s Investment

The big news driving this stock was NVIDIA’s investment. On the 19th, it was disclosed that NVIDIA acquired approximately 60,000 shares at $4. This significant endorsement from a tech giant like NVIDIA provided a strong bullish sentiment, propelling the stock’s price upward.

Trade Execution and Outlook

• Initial Entry: Around $10.30
• After Hours High: $13.79
• Re-entry: Over the $14 level

This stock has shown impressive movement, and while it’s challenging to predict its exact trajectory, the signs are promising. We’ll keep an eye on it and see how it performs in the coming week.

This trade on SERV exemplifies the importance of identifying key price levels and understanding the market’s reaction to significant news, such as investments from major companies like NVIDIA. As always, stay informed and adapt your strategies to the market’s ever-changing dynamics. Check out my Homepage for more information.

Have a great weekend, and we’ll see you on Monday!