We will be entering a position as the stock appears ready to resume the long-term uptrend higher. Due to the recent consolidation we are able to enter and have a strong position size due to the relatively close stop placement.
The recent price consolidation has the look of a Cup/Handle or Bull Flag formation. After the sharp decline through Sept-Oct, shares have snapped back and are now at new highs. Prior to this week's breakout price consolidated again forming the Flag or Handle and is suggesting higher prices in the future.
We can place our stop below the higher low formed by the Flag/Handle. That area also coincides with the rising 20 WMA. If price were to fail that swing point we would want to step aside as more consolidation would be likely.
Taking a look at the Relative Strength vs the SP500, you can see a steady trend higher and this recent correction in price also found support right at the Relative uptrend going back to the '09 lows.
Our risk is well defined on this trade and a stock a all-time highs gets the benefit of the doubt. This is an easy entry here.
Taking a look at the Relative Strength vs the SP500, you can see a steady trend higher and this recent correction in price also found support right at the Relative uptrend going back to the '09 lows.
Our risk is well defined on this trade and a stock a all-time highs gets the benefit of the doubt. This is an easy entry here.
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