Friday, December 19, 2025

When Technical Compression Delivers

Trade of the Day Wake-Up Watchlist

"CAVA wasn't special. The setup was. When you get multiple timeframe compression on an oversold name with a defined pattern, you're positioning before energy releases."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Wednesday morning, I sent you a setup most people ignored. CAVA, down 52% for the year. A Mediterranean chain everyone had written off.

The chart was telling a different story.

The Spring Just Unloaded

CAVA was sitting at $53 with multiple timeframe compression building. 195-minute and 135-minute squeezes stacking up like a coiled spring getting tighter.

I told you: "Multiple timeframe squeezes don't guarantee direction. But they guarantee volatility is coming."

The spring unloaded faster than expected.

Live Accountability

 

While CAVA was breaking out, I was adding to the position in real-time during our Holiday Trading Challenge:

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Because if you wait too long, it could be too late.

While CAVA was breaking out, I was adding to the position in real-time during our Holiday Trading Challenge:

Wednesday: "Adding to CAVA Swing Trade - bto CAVA 12/26 $55 calls @ $1.10"

Thursday morning: "Closing Last CAVA 12/26 +100% - stc CAVA 12/26 $55 calls @ 2.18"

From $1.10 to $2.18 overnight. One hundred percent gain in 24 hours while everyone was focused on the bloodbath in tech stocks.

That's what happens when technical compression releases with volume and momentum behind it.

And if you were in the free live challenge, you could have taken action on this play too, which judging from the chat, we had a few folks that nailed this trade.

Why This Matters More Than One Trade

CAVA wasn't special. The setup was.

When you get multiple timeframe compression on an oversold name with a defined pattern, you're positioning before energy releases. You're not chasing momentum - you're anticipating it.

The market loves to overshoot.

Stocks that fall too far, too fast often snap back just as violently when technical conditions align. CAVA dropped 52% year-to-date, but the chart was showing accumulation, not distribution.

Most traders miss these because they're looking at fundamentals instead of price action. They see a beaten-down restaurant stock and think value trap. They miss the technical energy building underneath.

Pattern Recognition Over Predictions

This isn't about being right on CAVA. It's about recognizing when compressed energy is ready to release.

The 195-minute and 135-minute squeezes were storing pressure for days. Every sideways session added more tension. When both timeframes compress simultaneously, the resolution move tends to be fast and substantial.

That's not prediction - that's pattern recognition.

The compression will always resolve. Direction determines everything. But when you can identify the setup before it breaks, you get asymmetric risk/reward positioning.

Your Action Plan

I've been sharing setups like this live, in real-time, with full accountability. The challenge participants saw the CAVA add, the management, and the +100% exit as it happened.

Not hindsight analysis. Real-time decision making with fundamental money principles.

The spring-loaded setups are still out there. You just need to know how to spot them before they unload.

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