Boring Stock, Getting Close to a Potential Long-Term BreakoutWaiting for a monthly close above the 8-year downtrend line to get in. The chart is pretty messy but many other signals are converging around that area (200-month EMA, 50-month EMA, .382 Fib). Price had a false breakout early in the downtrend based on the trendline I drew but I drew it where it is because it had many hits along this line. If price breaks out here I think it's significant because it would also be breaking above the 200-month EMA after dipping below temporarily (which it hadn't done for a really long time). I'm waiting for a monthly close above the 200-month EMA to start a position, and will plan on adding more if it can get about the 50-month EMA. I don't have a stop loss, this is a long-term buy and hold and collect the dividends if it can breakout. If it has a false breakout and goes down, I'll just buy up more at certain intervals and will update this idea. I think from looking at this chart and reading/listening to some of the other ideas about this stock that it can surpass the highs it made about 8 years ago and my price target is $270-$300 where I would start to think about using a stop loss and protecting profit. I like using stop losses eventually because it can let a stock potentially run rather than just selling when it hits the target. Anyway, waiting for another week to make a decision. If price ends up failing here, I think I will probably be able to get in down around $100 or maybe even a bit lower and I would consider starting a position there but I like buying on breakouts rather than trying to catch a "falling knife". One more thing on this stock, it hasn't participated much in the market recovery since the March lows from the covid panic selloff and that makes me like it also (just look at a long-term chart of Microsoft after the tech bubble, for a long time it pretty much traded sideways and now look at it, I'm not saying IBM will do the same but it could, I'm not one to limit the potential of the stock market long-term, over long periods of time it goes up on average).
**These are just notes about what I am personally considering doing and are not recommendations to trade. If you decide to follow any of this, trade at your own risk and keep a long-term perspective, I'm talking this trade could take the better part of a decade to play out (not weeks or months, that would be a short-term trade which is usually not for me).**
