Richard Moglen

Trade Opportunity Case Study of the Week: TTAN Range Breakout – | April, 2025

Richard Moglen

Stock Trader & Student of the Markets. I help traders improve their systems & performance at TraderLion & Deepvue

April 20, 2025

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The Trade Opportunity

The purpose of this weekly article is to analyze the top trading opportunity of the past week. This is to improve our identification and execution of high quality trade ideas that meet our setup requirements.

Each article will focus on a stock that meets one of three of the main categories of setups I trade:

Range Breakout / VCP / tight area breakout
Pullback to Support/ Key moving average
Gapper / Post Gap Setup

These articles are like taking a step into the batting cage and loading up a historical at bat from an Ace pitcher in the world series – they will help you prepare and execute in future situations by studying important moments from the past.

The setups we cover will appear again and again in each market cycle

Please let me know in the comments what other topics you would like me to write about.

This past week we continued to consolidate within the large bar driven by the tariff pause.

Bases continue to develop but there was not many top opportunities last week. Here are some of the top opportunities from the past 5 days.

HTZ was a news catalyst opportunity for active traders after a Bill Ackman stake was made public.

TMDX broke out of a lower range and acted well

ADMA inside day breakout at a key level

SDGR powerful move on news catalyst

Today however we will be focusing on TTAN and the range breakout on April 11.

Discovery

Before you can trade a stock, it needs to get on your radar and then on your focus list.

How would you get TTAN on your radar? It was on the Deepvue Leaders Screens which I review each day and I always pay special care to promising recent IPOs.

TTAN was featured in the April 10th report.

TTAN was forming a base and recently had moved up powerfully before forming a tight inside day below a key level above the 21ema and 50 sma. Note how it has been outperforming the market and is in a relative strength phase

Setup and Execution

The buy point for TTAN was through the pivot with risk managed at the low of the day.

Despite having 50 million dollar volume, TTAN does not trade very liquid looking at intraday charts and the ADR of 8.6% would lead to a smaller than typical size.

A 10% position would be about right especially given the market environment. 10% position with a 2.5% stop would only be risking 0.25% of the portfolio.

Into the end of the day you would only have a cushion of about 1.5%. This is about as low as I would go to consider holding through to the next day.

You may notice there is not much volume with the breakout. This is a negative, however for consolidation pivot breakouts there is not always big volume as it is an early entry. Volume matters most on the true base breakout.

The next day we gapped up, pulled into the prior day close before rallying strongly, finishing up 5%. Now you have a good cushion to continue holding. and could move up your stop to breakeven

The next day we gapped up follow through strongly, breaking out of the base. Volume came in and it may be prudent to sell some into strength (25-50% of the position depending on agresiveness)

Note how the open and the low were the same price, a clear sign of strength on a breakout move

The next day we looked to follow through even more and it would be justified to sell more into strength with the stock being up close to 25% in 4 days. That day at peak was up 8% but closed only up 2%, a sign of some profit taking and potential for some incoming consolidation.

At this point a back stop could be just below the low of the Open=Low breakout day. If TTAN is to continue higher, that level should be defended.

On Thursday, the end of the week, TTAN shook out and closed strongly, a good sign but also another indication that it may tread water for a bit as some supply is hitting the market.

At this point more could be sold into strength waiting to re-add if it forms a tight range here/10ema pullback/oops reversal. It is currently short term extended.

The worst case stop could still be at the low of the breakout day or could aggressively be at the low of Thursday’s bar. Either way if it reverses next week and stops you out on the remainder if would be a successful trade.

Next week TTAN ideally tightens and treads water, maybe pulling back to the base breakout level and letting the 10ema catch up and potentially setting up for another swing trade.

However if it undercuts Thursday’s low negatively and closes below the breakout level it would likely need more time.

Recent IPOs can make strong moves like this but are more for renting than buying and holding with faster sell rules and lower position sizes, especially in a choppy market below the 200sma.

TTAN eventually will go through a longer basing period. Stocks that do well in the early IPO Boom Zone are ones to focus on later if they can set up again