I just wanted to document a few of my other current positions. One stock that I am currently holding is a moderate position in $OCUL at about $30 per share.
I bought into this one for several main reasons. First, the biotechnology industry has been very hot in this first few weeks of 2015. I like the chart because of the nice up trend over the last 4 months with very little volatility. The stock is making 52 week highs so there is no real strong resistance for as far as the eye can see. The RSI is strong (>70) on the daily, weekly and monthly and the stock is trading above but close to the 4 ema. These are all criteria that I use for momentum chart plays.
Additionally, I think this stock is currently basing really nicely – for the last 2 weeks RSI has remained strong and the price has stayed constant with nice tight candle formations. The volume has dwindled nicely which is another thing I look for when buying into a basing stock. The hope is that in the next few days or weeks this will continue to consolidate and start to move upwards off the base that is forming around $30 per share. My stop loss is mentally set for $29 per share and I have a price target of >$35 per share. This is a speculative play really where if some good news hits the upside could be large, and the solid base forming is a reassuring security blanket that hopefully helps to limit the potential downside.
The How to Make Money in Stocks Complete Investing System: Your Ultimate Guide to Winning in Good Times and Bad by William J. O’Neil is one resource that I use alot to identify these types of trades and I highly recommend it if you are new to trading and looking to swing trade momentum stocks successfully. I also just finished and published a new book on kindle that gives several valuable pieces of advice for new traders to help them maximize profitability and avoid some of the learning mistakes that I and many others have made early on. It is by no way a complete guide to trading, rather just a collection of polishing tips!
Google luck trading and please feel free to leave comments if you find these posts useful or interesting.