This stock is apparently a hot one to bring up as I have had a couple of people post questions on the blog and several emails regarding why I chose this particular trade.
Quite simply, it is because of this:
The long term trend (higher highs despite the lower market lows in March and this one-off panic sell) is still intact. In fact the stock has broken above the long - term trend line and closed above ALL exponential moving averages (20, 50, 120 EMA's).
The MAC-D is looking good with a nice buy signal being flashed. So in my books this is actually a sweet buy signal. But since this stock is volatile and I'm also not particularly keen on where the broad market as a whole is headed for the next 6 - 12 months or so, I have some tight following stops moving along with the price.
I'm about 5% of the movement range of the last few days (the big jumps on the consolidation), which puts my current stop-out point at $2.51. It will follow the stock at around a $.45 range behind the upward movement.
And here's a look without those nasty lines to blemish it. What a beauty, eh?! We're sitting above all the EMAs. And in a few days it looks like the 20-day will be back on top of the 50 day, and hopefully acting as a nice launching point for the stock in the near future.
Anyway I hope this answers your questions. Feel free to keep asking - And if you have any ideas for stocks or commodity plays or anything else out there fire them my way and I'll post my two cents on it.
Cheers! Happy Investing All!
P.S. Don't forget to sing up for email updates when I put up new posts. Due to the nature of some of my trades the window of entry opportunity can be limited to an hour or less sometimes - if you feel like coming along for the ride this is an easy way to get the trade first!