CleanSpark (CLSK) is a company that provides energy management software. Recently they secured 3,650 Bitcoin miners to be deployed in June and July of this year. As these miners go online, CLSK will likely become an alternate play for Bitcoin moves.

While this sounds interesting, for purposes of our swing trade strategy, it is irrelevant. What we are interested in is price momentum potential and risk. The recent consolidation over the previous few months since the 42 area peak places CLSK in an attractive location for a new long swing trade idea.

What makes the trade compelling is the reward/risk. 6 points of risk, for an potential profit of about 12 points is worthwhile. Not only that, but because of the nature of this stock’s price movement, it is within reason to see such a move unfold over the next few weeks.

What is important to not lose sight of is the risk relative to the broader market. Right now the S&P and Nasdaq are both at levels where bearish activity is likely to follow. If a sharp correction develops in the coming month or two, this stock, along with many others can be adversely affected.

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Here’s the swing trade idea:

Buy Stop: 23.25
Stop Loss: 17.25
Target 1: 29.75
Target 2: 35.75
Target 3: 42.75
R:R 2.13

Keep in mind it is important to respect the buy stop and stop loss orders. These are the only controls we have over the risk. Which is especially important in light of the vulnerable location of the broader market and Bitcoin.

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