It’s been a week since I last reviewed the progress of this trade (Dec 13 Trade Review). The position has only improved since then with the share price tagging a new all-time high today.
Leading up to today, the price action has been very positive. Lots of support on pullbacks. Green days correspond with higher volume than the red days. Now the chart is showing some really good signs for a potential breakout.
A) Today is a new all-time closing high. It just barely closed higher than the previous high as well, but not significantly.
B) Volume is even higher than yesterday and above average.
C) The RSI is crossing over 70 and getting into a bullish zone.
D) MACD is following through with the bullish crossover and looks positive.
As rosy as it looks, I have to anticipate the possible alternative results. Perhaps the approval of the ACB and CMED acquisition tomorrow will somehow affect the share price of WEED negatively (don’t ask me why, just a “what-if?”) and we go back down, and continue range-bound around $20.
I don’t have a very good strategy for figuring out when to sell into the strength when a stock is traveling in uncharted highs. I’ll likely be keeping a closer eye on the price action the following days, and look for any signs of a failed breakout to lock in some profits.
Trade Review – Intel (INTC)
Just reviewing my current trade with Intel (INTC). I entered this trade prematurely...