In our last edition of the Daily Smart Report, we went over how to find explosive support and resistance levels. This is the key to our, and many other successful traders, success in the market. It may seem too simplistic, but rest assured, it works. Today, we have another great example of how to find the most meaningful levels on a stock and use it to implement our strategy.

A while back, we analyzed a trade on Spotify (SPOT) in which we highlighted the same level we are looking at now. Stretching all the way back to 2020 the 160 level has been a level to watch, as this was the level that was needed to be broken before the massive rally all the way to almost 400 took place.

Well, that level is coming back into play once again and while the possibility of a run back to 400 may be unlikely, this level has shown to be a nexus point for the stock in the past. After approaching and breaking above 160 over the past week, we are watching this stock for a bullish breakout once again.

If the stock market can return to its strength of the past couple weeks, we can reasonably assume it will carry stocks like SPOT with it and at a great spot to do so. If the stock can break and hold above this important resistance level, we expect there to be a race higher. This could be your entry point, or as we commonly like to wait for, a retest of this 160 level before the rip higher.

This is definitely a trade you want to keep on your radar as this explosive level of resistance is broken. Don’t let this opportunity to put on a winning trade pass you by. Prepare for the move now, before it’s too late.

Learn to find these levels for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.