Nice Weekly Breakout on $RIOT – July 7, 2023
This is Scott with your Chart of the Day. I want to take a look at Riot Platforms ( NASDAQ: RIOT ).
Now, Riot ( NASDAQ: RIOT ) is in the Bitcoin and Blockchain space. They are a Bitcoin miner and everything Bitcoin has been running nicely lately, in case you haven’t been paying attention to that space. This has been a great trade for a lot of us over at StockMarketMentor.com.
I want to do a little chart analysis to give you an idea of why I think this stock outperformed some of the others today. A lot of it has to do with just catching up to some of the other Bitcoin miners. Someone asked today, why do you think Riot ( NASDAQ: RIOT ) is rocking the way it is today?
And I talked about Marathon ( NASDAQ: MARA ). If you look at Marathon ( NASDAQ: MARA ) here, this is another Bitcoin miner. From June the 20th, that’s this day here, let’s say, off the 50-day moving average, that’s the red line here, Marathon ( NASDAQ: MARA ) is up about 70 percent in 20-days, 70 percent off of the 50-day moving average.
Meanwhile, if you look at Riot ( NASDAQ: RIOT ), Riot ( NASDAQ: RIOT ) off the 50-day moving average is only up about 40 percent. And so I told this person that I think Riot ( NASDAQ: RIOT ) is really just kind of catching up to some of the other Bitcoin miners.
Even if you look at something like Hut 8 ( NASDAQ: HUT ) off of the 50-day moving average, this is up well over 100 percent. If you look at something like TeraWulf ( NASDAQ: WULF ), once again, off the 50-day moving average, this stock is up over 70 percent. And so my suspicion is that we are getting a bit of a catch-up play here with Riot ( NASDAQ: RIOT ).
Now, it looks great here on the daily chart, it looks even better on the weekly because you can see how it broke above and closed above this weekly 200-period simple moving average. And so we have a nice weekly breakout here. A clear downward sloping trendline, clear resistance, a breakout, and it comes on higher than average volume.
That’s what I want to see in a weekly breakout. So while I think this stock is pretty extended here on the daily chart, we like weekly breakouts. We like weekly higher highs and weekly higher lows because that says that a longer-term trend is in play. And so I would definitely keep an eye on Riot ( NASDAQ: RIOT ) to continue to try and catch up to some of the other
Bitcoin miners.
One interesting note as well, is recently we have had some weakness in Bitcoin, I will look at BITO ( NYSEARCA: BITO ) as an example. BITO ( NYSEARCA: BITO ) broke out here and pulled all the way back to the 50-day moving average, which is not just kind of holding above the 50-day moving average but hasn’t really done much. And this is a great vehicle for trading Bitcoin.
So recently we have seen some weakness in something like this. But we haven’t seen that weakness play out in Riot ( NASDAQ: RIOT ). They have been in to buy the dip, and every time it opens lower it closes higher. And so there is some definite bidding going on as traders are having to reach up higher and higher to get the shares that they want.
And so I like the potential trend here that is starting on Riot ( NASDAQ: RIOT ). And I think it is definitely one that you want to keep an eye on into next week, and maybe even the rest of the month; we’ll see how it plays out. That’s what’s on my mind here with Riot Platforms ( NASDAQ: RIOT ), I hope it’s helpful.
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