NTES has had a number of pocket pivots contained within a reasonably tight, constructive, price/volume structure over the last several days. Today, it had another pocket pivot then reversed. Volume is heavy. Naturally, some trades will not work, thus it is always paramount to know one's exit point whenever one puts on a trade.
NTES has gotten support at its 50-day moving average. Some may wish to keep looser stops on a small core position and instead wait for a violation of its 50-day, knowing that NTES has violated its 50-day twice in recent months then turned back around to hit new highs both times. Such stocks as we have said before contain added risk as they tend to trade in a sloppier manner.
A tighter sell stop could be to sell part or all when NTES undercuts the low at 70.5 of its sideways price structure. It is currently trading at 70.8.
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2020 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.