As swing traders we often stalk a stock for days weeks or even months before entering. Why do we do this? In a universe of thousands of trading vehicles, there is no reason to rush or chase a stock.
We have been watching Google for quite some time. Over on Bullsonwallstreet.com, it has been our Stock of the Week twice in the past three weeks.
In this time we have developed a feel for the stock. It has become our friend. I can read it’s mind like I can read my kid’s mind. From the pre-earnings pullback, earnings breakout, and now consolidation post 50dma remount, GOOGL has developed character.
That personality profile is that of a volatile person that can lose their temper form time to time, but always ends up doing the right thing. In other words, we’ll get some volatility and fakeouts, but in the end it does what we technically expect it to do.
Watch this post breakout consolidation and look for a good entry on pullback to the 50 day moving average. This offers a good reward to risk profile and sets the stock up for its next run up.
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