RE: UK Stocks - Watchlist and Discussion
(2016-07-28, 06:23 PM)Smellypunks Wrote: isatrader JE looks good but sector I am not so sure on.
The sector is an important part of the method, especially for finding the A+ candidates (gold stocks were a good example of this early in the year), but it is always a secondary consideration for a lot of stocks, as often a stock doesn't fit into a traditional sector like JE.L doesn't, as imo it's creating it's own new niche in the market which the Financial Times has named "foodtech", which may become a new sub sector over time, as other competitors come to market like hungryhouse (i.e. Delivery Hero), Takeaway.com, Deliveroo etc.
So the sector charts aren't always as relevant, and in those cases it's more important to do direct competitor analysis versus other stocks in the same line of business. And if, as in this case, they haven't come to market yet, then you've only got the individual stock chart to rely on. And as you know, it's then down to the four key components of the method. i.e. Price Action, Volume, Relative Performance, and Resistance. See Stage Analysis Breakout Quality Checklist thread for a quick guide of these critical components.
I hope that helps
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.