ROOT Setting Up for Potential Short Squeeze Play

Technical Signals Align‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

"The combination of strong earnings, high short interest, and multiple technical triggers makes ROOT an interesting setup for potential upside." Nate Bear, Lead Technical Tactician, Monument Traders Alliance Editor's Note: The Free War Room Election Week Open House closes today. Over the last four trading sessions Karim and Bryan have racked up over a DOZEN winning trades. Including overnight winners in ADM for 153.2% and 105.2% in PLTR. Don't miss out on the final day, as it promises to be EPIC. Click here to get immediate access NOW. And at 11 AM ET, Karim and Bryan will be going LIVE for a special post-election and FOMC trading event. I promise you don't want to miss this! Click here to secure your spot in The War Room. See you inside, – Ryan Fitzwater, Publisher at Monument Trader's Alliance __________________ With the market rocking and rolling, I'm starting to look at some more speculative setups, ones that offer huge upside while minimizing risk. Today we're zeroing in on a small-cap insurance play that's been making waves after posting its first-ever profitable quarter. I'm talking about Root Inc (NASDAQ: ROOT), and while the fundamental story is improving, it's the technical setup that has my full attention. Let's dive into what I'm seeing. ROOT is currently trading well off its 52-week highs of $118.15, which immediately catches my interest for potential mean reversion. What's even more intriguing is the stock's high short interest of 20.3% with a tight float of under 8 million shares. The technical picture is showing multiple compelling signals: Multiple Timeframe Squeeze Yesterday, we observed squeeze formations developing on both the 78-minute and 130-minute charts. When we see these compression patterns align across different timeframes, it often precedes a significant price movement - much like a spring coiling tighter and tighter before release. Inside Day Pattern Thursday gave us an inside day formation, where the entire day's trading range was contained within the previous day's range. This type of price consolidation often precedes a decisive move. Stacked EMAs The Exponential Moving Averages are showing a beautiful alignment pattern. Picture a series of ascending steps, each providing support for the next potential move higher. Short Squeeze Potential With a remarkable 20.3% short interest and a tight float of under 8 million shares, ROOT has the ingredients for a potential short squeeze. Fundamentals Check Out While my focus remains primarily technical, the fundamental backdrop adds some interesting context: First-ever quarterly net income profitability 50% reduction in interest expenses Strong revenue growth at $305.7M vs $266.5M expected Expanding policy base and growing premium revenue When you combine this with improving fundamentals and bullish technical signals, we could see shorts forced to cover their positions, potentially accelerating the upward movement. Think of it like this - with such a small float, any significant buying pressure could force short sellers to scramble for shares, creating a domino effect of buying pressure. Based on the technical setup and squeeze potential, I believe ROOT could make a run toward the $100 level. While this might seem ambitious, we've seen similar setups in small-float stocks lead to explosive moves, especially when technical triggers align with high short interest. Your Action Plan: On Thursday, I initiated a position in ROOT during my Daily Profits Live Trading Room: In the morning, I bought ROOT November 15 $85 calls at $4.40, and later added to the position at $4.60. My stop is set at $3.60, with a target of $6+. I also bought deep-out-the-money $100 calls expiring on November 15. These are what I call "lottery ticket" trades - high risk but with the potential for explosive returns. While they don't all work out, when they do, the returns can be substantial. If you'd like to see more of these setups and learn how I trade them in real-time… Click here to join my Daily Profits Live Trading Room. NEW RESEARCH: AI Trading Tool "S.A.M." Could Have Found Profitable Trades With as Much as an 82% Win Rate (Over 5 Years)! 5-year backtest shows that a revolutionary new AI-powered scanner developed by legendary trader Nate Bear could have found as many as 7,286 profitable plays (an average of 5 per day). See why traders who have early access can't stop raving about how powerful this new tool is. See the LIVE demo here... >> Click to See the Demo << Monument Traders Alliance   You are receiving this email because you subscribed to Trade of the Day Wake-Up Watchlist. To unsubscribe from Trade of the Day Wake-Up Watchlist, click here. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Trade of the Day | 14 West Mount Vernon Place | Baltimore, MD 21201 North America: 1.800.507.1399 | International: +1.443.353.4977 Website | Privacy Policy Keep the emails you value from falling into your spam folder. Whitelist Trade of the Day. © 2024 Monument Traders Alliance, LLC | All Rights Reserved Nothing published by Monument Traders Alliance should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed personalized investment advice. We allow the editors of our publications to recommend securities that they own themselves. However, our policy prohibits editors from exiting a personal trade while the recommendation to subscribers is open. In no circumstance may an editor sell a security before subscribers have a fair opportunity to exit. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. All other employees and agents must wait 24 hours after publication before trading on a recommendation. Any investments recommended by Monument Traders Alliance should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Monument Traders Alliance, LLC, 14 West Mount Vernon Place, Baltimore, MD 21201.