RE: US Stocks - Watchlist and Discussion
(2015-01-12, 10:26 PM)Amedee Wrote: Thanks for pointing out about the opportunity costs. I re-read that part, interesting enough! In P&F charting they say you always have to look left (on the chart). That way you can see the resistance or support zones.
That's a point that, in my opinion, speaks in the advantage of DEPO. Apart from the volume, it enters 'virgin territory'. I mean, it starts trading above resistance zones so it could become even more interesting.
In other words, I wonder if the advantage of virgin territory doesn't compensate for the lack of volume. Weekly volume was of little meaning but daily volume was 1.795.029 in stead of 400.000 - 800.000... I wonder, can weekly volume pick up this week, because the breakout was near the end of the former week?
Another advantage is the price objective for DEPO which is $27. This gives us, when buying at $17, a RR of 4!
- PO or price objective = 27 - 17 (price bought) = $10 reward
- SL or stop loss = 14.5 > 17 - 14.5 = $2.5 risk
- RR or Reward to risk = 10/2.5 = 4
And besides volume and virgin territory, I also like the P&F RS chart which is giving a spread triple top buy signal (another strong sign).
We will see
Yep, it does have a lot of positives, and fits 80% of the methods criteria. So good luck with the trade.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.