Charts and Metastock: |
EGHT is a risky play, but it matches exactly the kind of chart pattern I'm looking for today. I've searched for stocks that recently broke to new lows (preferably all time lows), breaking several supports, and then clawed back up, surprising investors:
This is a pattern that, when accompanied by volume, has a good probability of developing powerful advances in the short term:
EGHT rose 24% yesterday. I'll buy it today at the open, expecting it will continue to advance. I will keep monitoring the stock to know when to sell.
During the session I will disclose a bit more of our strategy, that will change a little bit, because like we buy 3 shares every day, we have to sell them faster not to be holding a big bag of different stocks. We don't want to hold more than 15 stocks at the same time, and with the 3 purchases of today we'll have 12 stocks on our portfolio. So we must take a shorter term view to stock trading and monitor our holdings more frequently.
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David Randolph
www.3stocksonfire.org
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