Shake Shack (SHAK: NYSE)

Shake Shack (SHAK), a growing restaurant chain in the U.S. and globally, ended 2023 on a strong note. CEO Randy Garutti highlighted the success of their sales-driving strategies and margin expansion, with the company opening 41 new domestic restaurants and 44 licensed stores in markets like Thailand and the Bahamas.

Despite persistent inflation, Shake Shack continues to attract customers. Same-store sales increased by 2.8% year-over-year, supported by strategic initiatives. If the Federal Reserve keeps interest rates stable or cuts them, Shake Shack is well-positioned to further expand its store count and profit margins in the second half of 2024.

Shake Shack’s growth potential is substantial. With 518 locations (334 in the U.S.) as of the end of 2023, there is significant room for expansion. While it may not reach McDonald’s scale, it could approach the size of Five Guys, which has nearly 1,500 U.S. locations. This growth, coupled with international opportunities, suggests Shake Shack could quadruple its current number of locations.

We are bullish on SHAK above the $87.00-$88.00 range, with an upside target of $145.00-$150.00. Investors should watch for continued sales growth and strategic expansion efforts as key drivers of future performance.

GigaCloud Technology (GCT: NASDAQ)

GigaCloud Technology (GCT), a provider of end-to-end B2B e-commerce solutions for large package merchandise, recently closed two significant acquisitions. On October 31, GigaCloud acquired Noble House Home Furnishings’ assets for $85 million, and on November 15, it purchased cloud-based interactive digital signage company Wondersign for $10 million. These acquisitions are expected to enhance GigaCloud’s competitive edge and synergistically boost its revenue and margins.

CEO Larry Wu emphasized the company’s adaptability and focus on execution, which have enabled it to seize market opportunities effectively. The acquisitions of Noble House and Wondersign not only demonstrate GigaCloud’s strong profitability and cash position but also reinforce its commitment to providing a seamless shopping experience for marketplace participants.

GigaCloud Marketplace’s gross merchandise volume surged 40.8% year over year to $684.8 million, driven by a 9.6% increase in active buyers and a 28.5% rise in spend per active buyer to $148,793.

We are bullish on GCT above the $29.00-$30.00 range, with an upside target of $58.00-$60.00. Investors should look for continued growth in merchandise volume and successful integration of recent acquisitions as key performance indicators.

Polkadot (DOTUSDT)

Polkadot (DOT) has encountered difficulties in reclaiming the critical $7.5 resistance region, which aligns with the 200-day moving average at $7.4. The current bullish momentum appears insufficient, suggesting a possible short-term consolidation near this pivotal level. A detailed examination of Polkadot’s daily chart reveals that after a resurgence of demand near the $6.5 support level, the asset experienced a bullish surge. This movement brought DOT to a critical resistance zone defined by the 200-day moving average and the static level at $7.5.

Breaking out from this key price range could attract more demand, leading to a sustained bullish movement. However, the current price action around the $7.5 mark indicates fading bullish momentum. Buyers are facing significant challenges pushing the price beyond this resistance. Therefore, a sideways consolidation or slight rejections are likely before the next decisive move.

In this scenario, the $6.4 level will be the primary support in the mid-term. Should DOT retrace to this level, it will be crucial to observe the market’s response. A strong rebound from this support could renew bullish efforts to break the $7.5 resistance. Conversely, a failure to hold the $6.4 support could lead to further declines, necessitating a reassessment of the asset’s short-term outlook. As the market navigates this critical juncture, traders should monitor these levels closely and adjust their strategies accordingly.

Toncoin (TONUSDT)

TON has formed a new narrow weekly pivot, with the current pivot grid situated within the previous one, indicating a potential uptrend in price. It’s crucial to wait for the price to establish support before entering the trade. Once the trade is initiated, it’s advisable to move the stop loss to break even when the price has moved 2%-4% away from the entry point. This strategy ensures a break-even trade if the market behaves unexpectedly.

Enter the trade within the range of $6.3655 to $6.4378. The take profit targets are set at $6.7002 and the next resistance area around $7.0837. This strategy allows for capturing gains while maintaining a disciplined approach to risk management. By moving the stop loss to break even after a 2%-4% price movement, you protect yourself from potential losses and ensure that unexpected market shifts do not adversely impact your trade.

For risk management, set a stop loss at a candle close under $6.2680. This level is chosen to limit losses if the market moves against the trade, preserving capital and allowing for re-evaluation of the trade setup if necessary. By adhering to these guidelines, traders can effectively manage their positions and maximize potential profits while minimizing risks.