Hey everyone! Just wanted to follow up on SCPCF, which I mentioned on Tuesday. The stock has been absolutely crushing it, up 60% in just three days!

Here’s what’s fueling the momentum:

Scope Technologies recently announced a proposed private placement to raise $2.25 million in funding. This capital is expected to drive their next phase of growth, particularly in advancing their intelligent technology solutions for fleet management and telematics. (More details in the link below.)

The market seems to love the news, and the chart speaks for itself—massive volume and a clear breakout. Here’s the breakdown:

Chart Analysis:

• The stock was trading in a defined descending channel, with the price repeatedly bouncing between upper resistance and lower support lines. This indicates a long-term bearish trend.
• Recently, the stock found support near $0.75, with buyers stepping in strongly to reverse the trend.

Breakout:

• The price surged past the upper boundary of the channel on increased volume, signaling a potential trend reversal or bullish breakout.
• This breakout occurred after the company’s $2.25 million private placement news, which likely acted as the catalyst for renewed investor interest.
• Volume has significantly spiked, confirming that this breakout is backed by strong market participation. This adds credibility to the move and suggests the momentum may continue.

Resistance Ahead:

The next major resistance is near $1.20 (where the stock traded in early October). If momentum remains strong, the price could test this level soon.

• Locking in Profits: With such a rapid price movement, it’s critical to think about locking in profits, especially since stocks can retrace after a sharp rise. Here's how traders might approach it:
• Partial Profit-Taking: Consider selling a portion of your position to secure gains while leaving some shares to ride the momentum.
• Trailing Stop:Set a trailing stop-loss below recent support levels, such as $1.00, to protect profits while staying in the trade if the rally continues.
• Watch Volume: If volume begins to fade and the price struggles to break resistance, it may signal a pullback or consolidation is near.

Communicated Disclaimer: This is just the tip of the iceberg of DD and not financial advice. Please continue your DD before investing! Sources - 1, 2, 3