While market was overreacting from the Fitch downgrade of the USA, traders did what they do best, they traded and analyzed.
After a short holiday, I am back with monitoring markets and checking for some nice profit making possibilities. Therefore, I found a good play in making, Samsara Inc., ticker IOT.
Things to consider when looking into this new tech stock are:
1. There is a Cup and Handle formation in forming, the pattern is far from done and it will need some time to be completed, so I will wait and monitor closely the price action.
2. There is a huge Double Bottom pattern in making as well, which needs to broke levels between $28.78 and $30.82 price range to be considered a valid break of the pattern.
3. My guess is that the price will fall from this level, up to the smaller support level sitting at around $21.69 to $22.58 price range. If it falls to that price level the Cup pattern will get it's Handle and this will be my first buy point. I will test this price range with 20-30% of planned buying.
4. If I am wrong and price continues to drop from that level, my Stop Loss will be sitting at $20 round. I will sell everything at this price range.
5. If by some chance we don't get Handle formation but we got the break of the Double Bottom pattern instead, I will be entering my trade at around $29.75 as my first buying opportunity.
6. My Stop Loss will be set at 8% range from the entry price, sitting at around $27.2 price level.
Please be aware that this is on Weekly level and it will surely take some time for everything to be done as analyzed. Of course, as always, please do your own due diligence before investing your hard earned cash.
After a short holiday, I am back with monitoring markets and checking for some nice profit making possibilities. Therefore, I found a good play in making, Samsara Inc., ticker IOT.
Things to consider when looking into this new tech stock are:
1. There is a Cup and Handle formation in forming, the pattern is far from done and it will need some time to be completed, so I will wait and monitor closely the price action.
2. There is a huge Double Bottom pattern in making as well, which needs to broke levels between $28.78 and $30.82 price range to be considered a valid break of the pattern.
3. My guess is that the price will fall from this level, up to the smaller support level sitting at around $21.69 to $22.58 price range. If it falls to that price level the Cup pattern will get it's Handle and this will be my first buy point. I will test this price range with 20-30% of planned buying.
4. If I am wrong and price continues to drop from that level, my Stop Loss will be sitting at $20 round. I will sell everything at this price range.
5. If by some chance we don't get Handle formation but we got the break of the Double Bottom pattern instead, I will be entering my trade at around $29.75 as my first buying opportunity.
6. My Stop Loss will be set at 8% range from the entry price, sitting at around $27.2 price level.
Please be aware that this is on Weekly level and it will surely take some time for everything to be done as analyzed. Of course, as always, please do your own due diligence before investing your hard earned cash.
My stop loss is sitting at around $20.45, since I am not sure due to the market movement how much the Handle will fall into it's making, I wanted my stop loss to be as small as possible.