APLD Long: Trendline Bounce + CoreWeave AI Lease

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🎯 Trade Setup Overview

Entry: Market at Open
Stop‑Loss: Below the trendline at ~$9.00
Primary Target: $14.60–$15.50 (analyst zone + historical highs)
Reward/Risk: ~50–60% upside vs ~7–10% downside = solid R:R ~5:1

📈 Technical Rationale

The stock recently bounced off a long‑term ascending trendline, confirming it as key support. A breakout above ~$10.40 would challenge the analyst consensus target zone ($14–15), projecting a favorable conviction trade.

The setup aligns with classic trend‑continuation patterns—lower risk entry at support with clear upside objective.

🤖 Fundamental/Bull Catalysts

Landmark CoreWeave Lease: APLD signed two 15-year leases (250 MW, + optional 150 MW) with Nvidia-backed CoreWeave, expected to generate ~$7 billion in revenue over the term.

Strong Sector Tailwinds: AI infrastructure is surging. CoreWeave is investing billions in new data centers (e.g., 100 MW→300 MW in Pennsylvania). APLD rides this wave as a data-center REIT pivot.

Analyst & Options Sentiment: Analysts target $12.70–13.40; unusual options flow shows heavy interest in calls up to $15 strikes.

📊 Volume & Momentum Metrics

The recent bounce was accompanied by increased volume—a signal of institutional demand and trend continuation.

Technical indicators confirm bullish momentum building.

📝 Trade Plan

  • Initiate long position around $10.00.
  • Place stop-loss just under trendline (~$9.00) to limit downside.
  • Scale out partial at $14.60 (analyst target) and consider holding a tranche toward $15.40 (historic high).


🛠 Risk Considerations

Trend support could fail—if trend breaks below $9.00, cut losses quickly.
Broader tech pullback or AI sector rotation could pressure price—always trail stops accordingly.

Disclaimer

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