Nebius Group: Five Star Trading Pattern Playing Out Beautifully

Image Source: Adam Śmigielski on Unsplash

Earlier in April, I highlighted the exploding Neocloud/AI infrastructure theme and flagged Nebius Group NV as one of the highest-conviction names on my watchlist. Now I’m following up on this trade because it’s playing out like the true Five Star Pattern that it is, notes Danielle Shay, editor of Five Star Trader.

If you missed the April 10 issue, here’s what I laid out:

• Specialized cloud provider built for the GPU/AI era with massive contract momentum – Meta Platforms Inc., Microsoft Corp., and others

• High short float = short sellers getting squeezed on breakouts

• Earnings 'Hot Zone' momentum

• Clean technicals: holding the 50-SMA and 34-EMA on the weekly chart

• Daily plus weekly squeeze ready to fire

Now, here’s a follow up chart.

Nebius Group was recently trading right around $157.73, up nicely from the April 10 breakout levels. It tagged a fresh high of $168.71 last week, directly at my 1.272% Fibonacci extension target, and has been more recently consolidating in the $157-$160 zone, which is directly at my noted price target.

As you can see, we appear to be two dots into the squeeze, and with each squeeze typically lasting eight-to-ten bars, this setup could still have juice. Just keep in mind that the “easiest” part of the move has already been made, and that typically, I will see tickers consolidate again before making the next leg higher.

About the Author

Danielle Shay is a market analyst, trader, and the VP of options at Simpler Trading. She is an expert commentator on Fox News, Fox Business, Yahoo! Finance, Cheddar, Stockcharts.com and more.

Ms. Shay is also a contributing author in John Carter's 3rd edition of Mastering the Trade. Her focus is on trend-following and directional strategies via options trading, though she covers stocks and ETFs as well. As a former teacher, Ms. Shay's goal is to help traders grasp the basics that make trading simpler-no matter their skill level. Her motto is, "If I can do it, you can do it."