APPN is forming a pennant, which is considered a continuation pattern. Volume has weakened throughout the pennant, which is in line with the formation. If there is a breakout to the upside, the move should be at least 1/2 the length of the flagpole, which means we would probably revisit ATH. This doesn't need to happen overnight (and doesn't need to happen at all although the bias is continuation of the previous trend) so we should monitor the price from here. Also, the last touch on the pennant lower line conicided with the .5 fib retracement level, which provided extra support. I have a position in APPN and am looking to add more at these levels with a tight stop loss below the lower line of the pennant.
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***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
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Breakout happening now. Throwbacks are not out of question so watch closely:
Nice to see another APPN charter call this nice little play!
Safe_Trades
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@Stocks-Snacks, hello there my friend. Did you chart this one too?
Stocks-Snacks
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@Safe_Trades, Didn't publish any charts on this but bought a $165 Call 3/19 @16.70 after seeing bullish patterns and a fellow analyst post possible Elliot Wave theory in the works. I like a lot of the charting you have been doing after seeing this you gained a new follower. Fell free to take a look at some of mine and provide any feedback, I am still fresh to the TA game!
Safe_Trades
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@Stocks-Snacks that’s good. Still has some room to grow. It will probably be a very profitable call. Thank you for the support! I’ll certainly look at your work my friend. Safe trades!
awisecrackin
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Hi, I love APPN for long term. I am considering buying more in my IRA which, right now i am doubled up in gains on taxable account. Not sure how to play this since i am in this one for the long, what do you think about a secondary entry point? in good times, and the bad?
Safe_Trades
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@awisecrackin, if you are in it for the long term your best strategy is DCA (dollar cost average),meaning you buy the same amount (of cash, not shares) periodically, that way you get the best average price. I always buy more shares of the stocks I own for the long term when they retrace, even if there is a chance they will retrace more (at which point I would continue to DCA and buy more). If you want to be more conservative at the moment you could wait for the pennant to breakout to the upside. I bought the largest bulk of my shares at an average price of $49. Since I am in it for the long term I just added a few more at the current level. I will possibly buy more if there is a breakout to the upside of the pennant. If it retraces further I would look into start adding more at the .5 fib retracement level and then the 50-ema and .618 fib level. Always buy/sell according to your own risk tolerance. Good luck!
awisecrackin
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@naxus28,thanks for your response. I generally approach it in that way but have some reserves with such a small track record in company and also it existing in my account at Fidelity that seems to not allow average cost per share at selling.... Right now, I have an average of $78 per share, majority at the $33 level. I am hesitant to ride that up at current pennant, or extending investment total dollars into retirement vs. non tax. I suppose it also comes into play that it is already 8% of my portfolio and trying to determine the high growth, high price diversification and timelines against those that are the longer term, lower CPS, higher risk. Any thoughts on how to determine the split of that? I am struggling with it as I this is my first experience in the scenario.
Safe_Trades
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@awisecrackin, I would hate to give you bad advice as I am not a financial adviser. For the average investor I rely on this rule of thumb: 10% savings account, 40% index funds, 25% growth stocks, 25% dividend stocks. Of course you can leave more cash in your bank account depending on your age group, investment style, and risk tolerance but this is a good way to build your portfolio. You can take a look at Ray Dalio's "all weather" portfolio as well. He includes gold and bonds I believe. As far as buying more APPN for the long term, you need to look at the company's fundamentals and assess the risks: research.tradeking.com/research/quotes/fundamentals.asp?mcsymbol=APPN. I think there is still a lot of upside in the long term. Since I am up a ridiculous amount I don't mind buying here. Good luck!
awisecrackin
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@naxus28, Thanks. I suppose I am just looking to talk it out vs. direct i'll take what you say for gospel. It's more of the challenge of conversation to see things and learn. I am 90% growth stocks, 10% cash. I am 30 years old. As a past life, I was an analyst but loathe the job now adays so I am a bit adverse to the overthinking which i tend to do. Not sure what's what at this point.
awisecrackin
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@naxus28, So as the theory is there but to morph and apply, i struggle. For example, a 15% allocation on a single stock, and a total of 56% of my 5 big bets exists of my total portfolio. I expect the 15k to turn to 100k sort of bets. I am not sure who to converse with that would be in the mindset of talking out certain things (i've had financial advisors, they don't pan out)