FB LOV 

Today I want to look at “Faceplant” ( NASDAQ: FB ), as I call it. This thing has been going down to hell for so long that you just almost wonder, is it over? Obviously, it is not over, the stock had fallen a little over 50 percent from the high, that is one heck of a haircut.

I really thought the tenner of this changed right here, and then we get this follow-up day here. A little bit lighter than average volume, but this actually worked pretty well. Then this little pullback, watch this, and the stock held. This little pullback tested this last low and then the stock started rallying higher, you can look at the volume, the volume started to pick up.

So this was really where I started feeling good about taking a position in this stock, right around 200.00. I am not a bottom-tick guy, I don’t try. I need to see the market saying, okay Dan, other people are in ahead of you but they are really smart and probably smarter than you are, so maybe you want to get on board with them. It was around $200.00 that I was looking at, so we move forward with this and that turned out to be a good move, it turned out to be a really good move.

But wait there is more. If we look at the weekly chart you really get a better idea of what this stock has done and how significant this move is because if we just draw a box from the high to the low and extend it back. We can see that the move this week has engulfed the last 3 weeks, most of the last month here, it was up a little bit more here, but this is a dramatic reversal from a lot of selling.

It is not the typical trade that I make, but when I see something like this I will think, well, I’ll play. And so you are long the stock and I am looking for a move to about 240.00. If we look at this on the daily chart, doesn’t that seem like it could happen? It is not even going to start filling the gap at that level. So from where it is now, that’s another 10 percent from 200.00. This has been a nice trade, I think it will be a 20 “percenter”. If you are trading options, all the better. I am trading options and I am trading stock, it’s all good.

CLSK RIOT MARA HUT GBTC 

This is Scott with your Chart of the Day. I want to take a look at a crypto miner, this is CleanSpark ( NASDAQ: CLSK ). A lot of crypto miners have been in pretty strong downtrends. As you know they follow Bitcoin pretty closely.

Let’s look at Riot Blockchain ( NASDAQ: RIOT ), it’s in a pretty good downtrend, but then the last couple of months here, basing. Marathon ( NASDAQ: MARA ), the same kind of pattern, it almost looks identical. Hut 8 ( NASDAQ: HUT ) is very similar, under the 50-day, under the 200-day.

And so while I like those miners I don’t think it’s too late to take a look at CleanSpark ( NASDAQ: CLSK ). Because CleanSpark ( NASDAQ: CLSK ) is above the 50-day, it’s above the 21-day, and it’s above the 8-day and they are all in order.

It is still under that 200-day moving average, but I would look at that as a potential short-term swing target. Because we have some clearly defined support, right there just above the 50-day, and we have some clearly defined resistance, right around that 11.50 level. And so even if we just run up and test the underside of the 200-day, depending on what Bitcoin does, that’s a 20 percent move just to test the underside of the 200-day moving average.

I think that is a pretty good setup to keep an eye on. Obviously, a lot of it depends on what Bitcoin does, and it is tightening up. If you look at the Bitcoin chart, let’s look at GBTC ( OTCMKTS: GBTC ) really quick, it has just kind of been going sideways here for a couple of months. So we’re watching, obviously, to see what Bitcoin does. But if it has a nice clean break to the upside I think CleanSpark ( NASDAQ: CLSK ) should be a chart to keep an eye on.