Hi DB,
Looks like I was wrong about SGTL, it did not trade back to support at 34, but instead rallied further. Good to hear you got a decent profit.
SGTL is now very oversold, which makes it a possible long position, particularly since the stock is in a strong uptrend.
139.142.147.218
In fact, you can see from the relative strength that SGTL has gotten steadily stronger relative to the general $COMPX. This is a big plus in my book, because it indicates that upside volatility is greater than downside, and so risk is attenuated correspondingly.
I think SGTL has a bit more downside before its current correction is finished. I would look to enter long at the lower BB rail. This will occur very soon, perhaps tomorrow. Presently, there are no technical buy signals in place, but this once should be watched carefully as it trades down to the lower BB rail. If you see a surge of volume there, followed by a successful break up through the intraday moving averages and confirmation by a higher high and higher low, then that would constitute an entry signal IMHO.
The reversal is high probability because of the relative strength IF volume surges, but I would not try to anticipate the reversal. Let the stock show its hand. Don't fire till you see the whites of their eyes.
Best of luck, and thanks for giving me feedback even though I was wrong ! :-o
T |
