Time to Enter MDB Again?On Thursday afternoon, the King Trading Momentum Strategy signaled alongside eleven other alerts that day, followed by five more on Friday. This activity doesn’t exactly scream “bearish” to me, but the market has a way of keeping you on your toes! With markets once again approaching all-time highs, I’ve been treading cautiously. My positions have been limited to just a few, with low allocation sizes in TNA, ADBE, PYPL, and XYZ.
When I looked at MongoDB (MDB), I found myself wondering why it was hammered after posting a double beat on earnings and providing decent guidance. It turns out the recent drop was primarily driven by the announcement that Michael Gordon, MongoDB's Chief Operating Officer and Chief Financial Officer, will be stepping down on January 31, 2025. Is this reaction overblown? After all, the company delivered a strong earnings report.
That said, MDB seems to have planted its bull flag in the ground. Even if this news creates headwinds, there’s a possibility it could retrace back to the 38% Fibonacci level. Even if the broader market eventually pulls MDB lower, this setup suggests an 8% potential upside, and I’ve set an initial take profit at 5% with a 3% stop loss. If this can hit the take profit, I will sell half to protect the trade and then set a trailing stop loss of 1.5% on the remainder, trying to sell of much of it as possible on the way up!
Unless Monday brings a complete washout due to fears surrounding the Fed meeting on Wednesday or the PCE data on Friday, I’ll likely use the typical morning volatility as an opportunity to enter this trade. Let’s see how this one plays out!
The King Trading Momentum Strategy combines the 5 EMA crossing above the 13 EMA, RSI strength, favorable momentum as measured by ADX plus evaluating recent volume changes and even something that measures breakout momentum called Beta for this one! MDB and over 100 equities are built into this script with optimal backtest take profits and stop losses and can be toggled on by simply checking a box (default they are turned off).
