Wait for long term position
Updated
The pattern seems consistent but is slightly shifted due to the dividend.
Now is perhaps the down-trending period before ER/D. I actually don't think the result ER will be highly correlated to the trend although it gives a hint to the overall direction.
BTW, I believe the ER will be super good, but the market reaction will be whether the company has plans to convert the supply crisis to real profit.
As a long-term investor, I believe the best entry point will be 4-6 weeks after the dividend date if you are inclined to own this company stock with the averaging buying strategy. Adjusting point for exiting might be a few days before the MACD converge point (+0.25 or above) after the dividend date.
Now is perhaps the down-trending period before ER/D. I actually don't think the result ER will be highly correlated to the trend although it gives a hint to the overall direction.
BTW, I believe the ER will be super good, but the market reaction will be whether the company has plans to convert the supply crisis to real profit.
As a long-term investor, I believe the best entry point will be 4-6 weeks after the dividend date if you are inclined to own this company stock with the averaging buying strategy. Adjusting point for exiting might be a few days before the MACD converge point (+0.25 or above) after the dividend date.
Trade active
Yesterday is the beginning of the 7th week after the dividend date so I bought a few shares. Market is still selling off so I plan to average down if it hits $19 or lower any time in the future. It's not financial advice so please do your own dd and enter with caution.Trade active
Today will be good timing for adjustment. A short-term target was reached today. I did not close the entire position but existed 20% before ER. The pattern is still intact. It will drop slightly (back to $21) from now on due to a pre-ER sell-off plus market volatility. However, if you hold through ER, I think that will be fine.That drop might be a final chance to enter a position for this company stock. Please proceed with caution. I will enter at $21,$20, and $19 for the ratio 1:2:3. This is just my strategy. Please DO NOT take it as financial advice.
I hope you see how the major shareholders manipulate this company stock. The MACD pattern just satisfied the condition. I hope we will see $26 by the ER in summer.
Trade closed: target reached
Exited 80% position today. I keep 20% for the dividend. It hit the target $31.81 three times this week but couldn't break. I considered it's a sign of a bigger drop although I have not seen an obvious one from MACD yet. The dividend is sweet but may not last long. We should not take it as the main reason for trading this company. When it pays less yield, your profit will evaporate with the dividend drop. Don't bet on so call longer-term investment in this company. Follow the trend and take profit.
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