JWN:
I saw a big drop on the JWN on 9/30/21, and that create a great dip buying opportunity.
First. It looks like there is a strong support at $26.
Daily chart shows a possible rebouce up to around MA 20 (MA is Moving Average) area next week.
Weekly chart shows JWN is still on the uptrend as long as it has not break $26. That says, if it break below $26, I will stop loss. Don't let your account loss more than 8% on each trade.
Second. The only problem is that it has a potential profit of only 7-8% and stop loss is 2-3% which is not very good.
The reason I still would do this trade is just because JWN historically and seasonally has proven to be valued higher during the OCT - JAN shopping months; so if it break through the MA20, I will keep it for long run and my target price is on the next resistance at $37.35.
Third. To be safe, personally, I won't put more than 10% of my entire fund into each stock. JWN is the same, so don't put more than 10% of your entire fund to this stock.
The reasons is that if JWN lost another 10% of its value next week which is highly unlikely, just for example, then I will only lost 1% of my entire fund.
I normally kept 10-12 stocks in my entire portfolio.
I never put any individual stock consists for more than 20% of my entire positions.
This analysis is based on what I saw on these indicators:
CCI: it is near the oversold area. Since the SPY goes higher than 1% on last Friday, I don't think JWN will go lower next week unless SPY crashes again.
MACD: it is in the negative zone and I should not open a long position but this is a rebounce buy and I only invest 10% into this stock so I have controlled my risk.
MA 10 is above MA 20 so it is still a upside tread. As long as price does not close below $26, I think it has a chance to go $30 or higher.
This is just my personal view on this stock, and it does not intend to provide any investment recommendations.
I saw a big drop on the JWN on 9/30/21, and that create a great dip buying opportunity.
First. It looks like there is a strong support at $26.
Daily chart shows a possible rebouce up to around MA 20 (MA is Moving Average) area next week.
Weekly chart shows JWN is still on the uptrend as long as it has not break $26. That says, if it break below $26, I will stop loss. Don't let your account loss more than 8% on each trade.
Second. The only problem is that it has a potential profit of only 7-8% and stop loss is 2-3% which is not very good.
The reason I still would do this trade is just because JWN historically and seasonally has proven to be valued higher during the OCT - JAN shopping months; so if it break through the MA20, I will keep it for long run and my target price is on the next resistance at $37.35.
Third. To be safe, personally, I won't put more than 10% of my entire fund into each stock. JWN is the same, so don't put more than 10% of your entire fund to this stock.
The reasons is that if JWN lost another 10% of its value next week which is highly unlikely, just for example, then I will only lost 1% of my entire fund.
I normally kept 10-12 stocks in my entire portfolio.
I never put any individual stock consists for more than 20% of my entire positions.
This analysis is based on what I saw on these indicators:
CCI: it is near the oversold area. Since the SPY goes higher than 1% on last Friday, I don't think JWN will go lower next week unless SPY crashes again.
MACD: it is in the negative zone and I should not open a long position but this is a rebounce buy and I only invest 10% into this stock so I have controlled my risk.
MA 10 is above MA 20 so it is still a upside tread. As long as price does not close below $26, I think it has a chance to go $30 or higher.
This is just my personal view on this stock, and it does not intend to provide any investment recommendations.