From here, traders could look to enter new long positions for a play higher into the high $180’s.
The picture remains solid to hold the stock for a move into the high $30’s.
Traders and active investors could take advantage as the stock is forming a major ‘base’ out of which it now appears ripe to rally.
Although it’s had a bumpy ride so far year-to-date, the current juncture sets up a buying opportunity for the active investing and trading crowd.
In short, active investors and traders should respect the recent price action for a potential bounce trade.
Although I believe in this company’s longer-term growth story, my intermediate-term concerns are rising, yet I see good reward to risk for a trade.
From where I sit, it remains technically overbought and could see a next downside target about 10% lower before better support is found.
In short, active traders and investors could look to either short the stock or buy puts or put spreads using options.
While I respect the long-term growth prospects of the company, the stock looks more vulnerable with every up tick…
Although the company seems to be an unstoppable growth machine, it shouldn’t be chased higher and bought at any price. Currently, it once again looks overly extended for the near term…