Short Term
Long Term
I might carry the "Take profit" limit further out to $314 or higher if $300 shows resilient support. Happy to own the stock in the long term.
Indicators to Watch
Positive MACD crossover
Medium term wedge broken and confirmed to the upside
Testing Medium Term uptrend line (blue)
Resistance at $304 (recent all time high)
Longterm analyst consensus price $314
The bigger Picture
FAANG stocks have seen a choppy and volatile run up to US elections after a strong V-shaped run since March 2020. I partially blame a sector rotation from Growth to Value prior to the US election, mainly funded by profit taking. At the time of writing the election results point towards a divided government. Such an outcome is likely to limit extreme moves in policy, regardless of who moves into the white house. As a result we have seen a big shift back into Growth stocks over the past trading session.
I like to believe that the Covid-19 situation will continue to dictate our lives in the near future and thus I seek exposure to companies that profit from this environment. However, instead of shooting for any kind of growth stock, having a solid balance sheet and a clear outlook is vital to my investment approach. It's something I like to call "Value-Growth" investing.
- Buy Stop $290
- Stop loss $287
- Take Profit $306
- R/R ratio 3:1
Long Term
I might carry the "Take profit" limit further out to $314 or higher if $300 shows resilient support. Happy to own the stock in the long term.
Indicators to Watch
Positive MACD crossover
Medium term wedge broken and confirmed to the upside
Testing Medium Term uptrend line (blue)
Resistance at $304 (recent all time high)
Longterm analyst consensus price $314
The bigger Picture
FAANG stocks have seen a choppy and volatile run up to US elections after a strong V-shaped run since March 2020. I partially blame a sector rotation from Growth to Value prior to the US election, mainly funded by profit taking. At the time of writing the election results point towards a divided government. Such an outcome is likely to limit extreme moves in policy, regardless of who moves into the white house. As a result we have seen a big shift back into Growth stocks over the past trading session.
I like to believe that the Covid-19 situation will continue to dictate our lives in the near future and thus I seek exposure to companies that profit from this environment. However, instead of shooting for any kind of growth stock, having a solid balance sheet and a clear outlook is vital to my investment approach. It's something I like to call "Value-Growth" investing.
Trade active:
Position opened
Buy @ $294
Stop @ $284 with subsequent limit at $287
Buy @ $294
Stop @ $284 with subsequent limit at $287
Trade closed: stop reached