The VoSI VooDoo Report
Offbeat Ideas and Commentary from the Depths of Gil's Trading Notes
Some names I'm looking at that are very oversold and which are in position or already have put in undercut & rally moves through prior lows are AMD, AMZN, CRWD, OKTA, PINS, SMAR, ZEN, and ZM. Most of these names are deep down in their patterns, and could at least lead to playable short-term rallies up into near-term resistance.
Some are pretty basic, such as the U&R in Amazon.com (AMZN) today. However, notice that it closed just below the 200-dma, so we'd want to see it clear the 200-dma in short order as confirmation.
A more radical one is CrowdStrike (CRWD) which is undercutting a low from its original IPO flag formation. The basic idea behind a U&R long entry is to come in as close to the prior low as possible and then use that same low as your selling guide. So, for example, CRWD's prior low from late June is 61.17, and CRWD closed today at 62.02. Thus if one bought the stock here the 61.17 price point would be your selling guide.
One major caveat to keep in mind with any of these U&R types of set-ups is that they will likely fail if the general market breaks to lower lows, but the will also tend to work well if the general market is able to continue rallying off today's intraday lows.
VoSI VooDoo(TM) Report - U&R Review 9/25/19
|Published:||25 Sep 2019 17:39 ET|
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.