Long

$U Breaking Above 50 DMA

Updated

has been a bit of a troubled stock. However, they did beat on earnings, and they have announced 265 job cuts and office closures to boost profit.

I am taking a chance here on a "turnaround play." I opened a ¼ size position just a bit ago. I’ll place my stop just under the low of the day (that’s about a 9% stop, bigger than I like but it has moved that much today, hence the smaller position size).

I like the volume on earnings day along with follow-up volume the next day. It is on track today to be about 150% of the last 10 days average volume so buyers are showing up. Although it is now above its 50 DMA it has yet to cross the 40-week MA (white) and just above that in light green is the 18-month AVWAP. Those could be strong areas of resistance, TBD.

Ideas, not investing / trading advice. Comments always welcome. Thanks for looking.

Note

Correction on todays volume. It is looking like it will be around 110% to 120% of last 10 days. So not tracking as good as I thought. Still it's good volume and buyers are in control for now.

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I have brought this up to a 1/2 sized position based on the VCP pattern on the 5 min chart. I have a tight stop at the most recent low on this 5 min chart.

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I am already long this stock and underwater a bit. Having said that we have a nice little pennant formation along with a Volatility Contraction and declining volume as it pulled back from my entry. IF, breaks higher I'll add to my position. If however, it brakes to the downside, I will close out and wait for another set-up. All TBD.

Trade active

this broke to the upside as I had wanted. I have added to bring this up to a 3/4 size position. Stop this tranche will be todays low.
Let's see what happens.

Note

is my second largest position ( is #1). It is finally making some progress here.

Note

we are now right up against the 40 Week MA. Let's see if it can get up and over. This "could" be potential resistance. TBD.

Note

I have taken 1/2 of my position off here as it backs away from the 40 Week MA and it is also fed day. No need to risk losing a gain of 3.3% so far. I will place a stop now for breakeven on the remainder so no lose trade at this point.

jaxdog

Ideas I publish are my own. They are not meant to be investment / trading advice. You are encouraged to do your own due diligence.

I may or may not take any trade published and I am under no obligation to post any action or update to any idea.

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