[isatrader]

LSE:AVON

Despite having had a very good run for a long time, this share looks like it can just keep on going. The 30w MA has turned up and it looks OK relative to the FTSE All-Share.

Do you concur? Is there anything that I am missing that would suggest this is not a reasonable buy?

In terms of the method it made a new Stage 2A breakout 5 weeks ago, and started to lose a bit of the initial momentum from the breakout last week, and is consolidating a bit. So it would be on watch for the pullback Stage 2 secondry B entry point if you were following the investor method strictly, but it could also grind higher with a fresh breakout from the small consolidation ( see a lower timescale like the 2 hour chart). But the risk would be considerably higher using the methods trader or investor stop losses here, as it's very extended from them, and so that would be a consideration, as the first thing to work out with any trade is what you are prepared to lose and also what you could lose if things go wrong, and if the risk is too high then it's not the right entry point. So my opinion is to always work that out first and then decide if it breaks any of the fundamental rules of the method.

Also the method recommends a 1/3 risk reward ratio too, so that something else to consider. I always try to do full due dilligence on a stock to come up with all the negative things I can find and well as the good things, and if the positives outweigh the negatives clearly then it's worth considering.

So minimise your loses above all else, and then the winners will make a much bigger difference to your account size.