IMPP

Imperial Petroleum looks like it may have found a bottom

There are a ton of trade setups in the market, but I focus on just a few that have a higher probability of success and have consistently worked well for me.

One of my favorites is the trend reversal.

A trend reversal happens when the price of an asset signals the end of the current trend and the start of a new one. Since I generally don’t short stocks, I’m specifically looking for downtrends to shift upward, creating opportunities for me to go long.

Imperial Petroleum (IMPP) has caught my attention as it attempts to reverse a two month downtrend, having lost almost 40%. At the end of October, IMPP traded as high as $4.50 per share. Just last week it hit an intermediate low of $2.73.

After a steady decline, the stock has recently bounced from a well-established support level near $2.80, a price zone that has consistently held up over the past year.

IMPP

It looks like it may have found a bottom and, by my standards is signaling a buy.

This move also coincides with a break above the downtrend line (yellow line) that had kept the stock under pressure for months. With the price now trading at $3.01, momentum indicators are showing signs of life, suggesting that the stock may be gearing up for a potential recovery.

One of the indicators I use (which is not shown here) just signaled a buy, indicating short-term bullish momentum. If the stock can consolidate above $3.00, this level may act as a new launching pad for a push higher.

📊 Key Levels to Watch:

• Support: $2.80 remains the critical support level. A break below here would negate the bullish thesis.

• Resistance: The first target is $3.40, with a potential move to $4.00 if momentum builds.

🔑 Trade Ideas:

• 🟢 Buy: A clean breakout above $3.40 with strong volume could signal further upside.

• 🟠 Hold/Wait: If the price stalls below $3.40, look for a retest of $3.00 or $2.80 before entering.

• 🔴 Sell: A drop below $2.80 would indicate a continuation of the downtrend.

What I like about this trade setup is the low risk with a stop loss order just below $2.80 and the potential target of $4.00. I’m risking .20 to make $1.00.

That’s all for now.

Eric