Stock Analysis: Best Swing Trading Stocks for Next Week 2025 – D-Wave Quantum Inc. (QBTS)
For traders seeking the best swing trading stocks for next week 2025, D-Wave Quantum Inc. (QBTS) presents a promising bearish opportunity. Its technical setup suggests a potential reversal from a strong resistance zone, making it an attractive candidate for short-term trading.
1. Weekly Time Frame Analysis
On the weekly chart, D-Wave Quantum Inc. is currently in a bullish trend, consistently forming higher highs (HH) and higher lows (HL).
Key observations:
- In December 2024, the stock price tested a significant August 2022 supply zone near the $11 level, where it has faced resistance.
- The RSI on the weekly chart shows the stock is in the overbought zone, indicating a potential reversal.
- A bearish harmonic pattern is completing around the $9 price level, suggesting further downside pressure in the coming months.
These signals align with the characteristics of the best swing trading stocks for next week 2025, particularly for short trades.
2. Daily Time Frame Analysis
The daily chart reinforces the bearish outlook:
- Bearish RSI Divergence: The RSI shows divergence, signaling that bullish momentum is weakening.
- Ultra-High Volume: Increased trading volume near the resistance zone indicates potential distribution and bearish activity.
- Downside Targets: The stock is likely to test the $2-$3 price level in the coming weeks, where strong support may emerge.
Key Technical Levels
- Resistance Zone: $11, acting as a strong supply zone where the price has faced rejection.
- Support Levels/Downside Targets:
- Target 1: $3
- Target 2: $2
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Why QBTS is a Strong Swing Trade for Next Week
- Overbought Conditions: The RSI on the weekly chart indicates overbought conditions, signaling a likely reversal.
- Bearish Divergence: RSI divergence on the daily chart confirms weakening bullish momentum.
- Supply Zone Rejection: The $11 level has acted as a strong resistance, marking the end of the recent bullish trend.
- High Volume at Resistance: Ultra-high volume near the resistance zone further validates bearish sentiment.
Swing Trade Strategy
- Sell Entry Range: Consider short positions around the $9-$11 range, where the stock is facing resistance.
- Stop Loss: Place a stop loss above $12 to manage risk.
- Downside Targets:
- Target 1: $3
- Target 2: $2
Conclusion: Bearish Swing Trade Setup
D-Wave Quantum Inc. (QBTS) is a strong candidate for the best swing trading stocks for next week 2025, with multiple technical signals pointing to a bearish reversal.
Traders should look for rejection at the $11 resistance zone or wait for further confirmation of bearish momentum. With downside targets at $3 and $2, this setup offers a favorable risk-to-reward ratio for swing traders.
FAQs
1. Why is D-Wave Quantum Inc. a good swing trading stock for next week?
QBTS shows overbought conditions, bearish divergence, and rejection at a significant supply zone, making it one of the best swing trading stocks for next week 2025.
2. What is the key resistance level for QBTS?
The $11 level acts as a strong resistance zone where the stock is facing selling pressure.
3. What are the downside targets for QBTS?
The downside targets are $3 and $2, where strong support levels may emerge.
4. What confirms the bearish trend for QBTS?
Bearish divergence on the RSI, ultra-high volume at resistance, and rejection from the $11 zone confirm the bearish trend.
5. What is the recommended stop loss for this trade?
The stop loss should be placed above $12 to manage risk effectively.
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Note: Always remember: risk no more than 1% per trade.” Keep trailing your stop loss to secure bigger profits.
Please note this is only an opinion and not financial advice.
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