Wednesday, November 12, 2025

The Chart That Made Me Stop Everything

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"Sometimes you see a setup that just looks too clean to ignore. Daily squeeze building. EMAs stacked perfectly. $300 resistance ready to crack. This was one of those moments."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

Yesterday's pullback brought SPY right into the 55 EMA and a significant point of control - exactly where you'd expect a bounce.

Which is what we got…

Where do we go from here?

My gut says higher, but honestly, I don't know.

No clear setups screaming at me on the index level right now. We'll see how it plays out.

But while I was scanning through charts yesterday, one made me literally stop everything I was doing.

LHX - L3Harris Technologies.

When I pulled up this chart, my first reaction was simple: "That is gorgeous... absolutely beautiful chart."

Sometimes you see a setup that just looks too clean to ignore. This was one of those moments.

 

The $300 Break Just Happened.

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LHX closed yesterday at $301.68 - the psychological breakout I was watching for just confirmed.

Let me walk you through why this chart got me so excited and what I'm watching now that the breakout is official.

Why This Setup Was So Clean

LHX had three things working together that created a high-probability setup.

First, a daily squeeze was building. For those new to this, a squeeze happens when volatility contracts. Think of it like a coiled spring. The stock's trading range narrows as buyers and sellers reach equilibrium.

Eventually, that energy has to be released somewhere—either up or down.

LHX had been in this compression phase for weeks, building up tremendous energy right below $300. That energy just got released upward.

Second - the EMAs were beautifully stacked on both the daily and weekly timeframes. When you see exponential moving averages lined up correctly (shorter above longer), it tells you the trend structure is solid.

This wasn't some choppy, directionless move. Weekly trend up. Daily trend up. That's the kind of alignment you want when playing breakouts because the path of least resistance is higher.

Third - LHX was sitting right at $300, one of those big psychological levels that actually matter in trading.

Round numbers create natural resistance because that's where people set their sell orders. "I'll sell at $300."

But when these levels finally break, they often break hard. All that pent-up selling gets absorbed, and suddenly there's a vacuum above.

What Happens Next

The $300 break happened exactly like I expected. Now the question is how far this runs.

My calls expiring this week are already working, but I'm not done yet. When these setups work, they tend to work fast. The combination of squeeze release plus psychological level break can create rapid moves.

Next resistance comes around $305-310. The beauty of these psychological-level breaks is that they often carry a minimum of 2-3% once they get going, but with the squeeze energy behind them, we could see much more.

I'm holding my position and watching for continuation. If we get another push with volume, this thing has room to really run.

If it stalls here and pulls back, that's fine too. We got the initial move we were looking for.

Sometimes the market hands you a chart where all the pieces fit together perfectly.

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