NVTL

[David Randolph]

The Trading Plan is:

1. Take profits at $13.6.
2. Exit with a small loss if the stock is set to close below $9.6.

[David Randolph]

Yesterday's action on NVTL was disgusting and I don't like seeing not even a bit of red in the TM portfolio page.

But as I review the fundamental case I feel the stock is just making something like an inverted head & shoulders pattern and should enter the "gap zone" soon.

I'm going to leave the trading plan intact.

Trading Plan:

1. Take profits at $13.6.
2. Exit with a small loss if the stock is set to close below $9.6.

[David Randolph]

Volume was quite strong on NVTL yesterday ... without analysts recommendations. It looks like the 2nd shoulder of the inverted H&S was made. Now we need a bullish breakout of the neckline, which currently stands around $11.

Trading Plan:

1. Take profits at $13.6.
2. Exit with a small loss if the stock is set to close below $9.6.

[David Randolph]

Trading Plan:

1. Take profits at $13.6.
2. Exit with a small loss if the stock is set to close below $9.6.

[David Randolph]

Oh man, NVTL issued a profit warning:

• UPDATE - Novatel cuts Q1 view, shares fall
at Reuters (Mon 5:45pm)

This loss will be larger than initially planned due to a gap down at the open. In a situation like this there's nothing to weigh or consider, the stop loss is triggered at the open.

The Trading Plan is: SELL.

However, I want to note that this was a "trading at a discount vs its peers" play, which often doesn't work, because the discount is there for a reason.

In the future I will shy away from this kind of plays.