Im a beginner so this should be pretty easy to understand.
This is simply a decent company having some internal issues, but those issues have seemingly been taken care of. The stock now seems to be starting its move back upward. Resistance has been broken, as well as what looks like a strong upwards trend is beginning. A few upcoming catalysts in the next few months should help push this stock higher. I believe we will be at the $20 level before that.
Over the last 4 months, this stock hit a low of $8.88, but I dont expect anything under $10 to be touched anytime soon, so I would set a stop around $9, and buy shares based on whatever you can afford to lose. With a $3 downside from $12, I personally wouldnt mind risking $3000, so I would probably buy 1000 shares at $12. I would potentially scale in....in lots of 250. When would I exit this trade? Once the stock hits $20, Id make sure my stop is somewhere around $17.5....and we can consider this a W for us. Unless it gaps way down during non-market hours on bad news....but thats just part of the game?
This is simply a decent company having some internal issues, but those issues have seemingly been taken care of. The stock now seems to be starting its move back upward. Resistance has been broken, as well as what looks like a strong upwards trend is beginning. A few upcoming catalysts in the next few months should help push this stock higher. I believe we will be at the $20 level before that.
Over the last 4 months, this stock hit a low of $8.88, but I dont expect anything under $10 to be touched anytime soon, so I would set a stop around $9, and buy shares based on whatever you can afford to lose. With a $3 downside from $12, I personally wouldnt mind risking $3000, so I would probably buy 1000 shares at $12. I would potentially scale in....in lots of 250. When would I exit this trade? Once the stock hits $20, Id make sure my stop is somewhere around $17.5....and we can consider this a W for us. Unless it gaps way down during non-market hours on bad news....but thats just part of the game?