Is it time to buy Mobileye (MBLY)? (October 04, 2014)

by DAN
I’m doing a quick Chart of the Day for Mobileye ( NYSE:MBLY ) here. Prior to Friday, the high was 58.61. Then this Friday we got a really nice breakout and I actually bought some, I had a little bit before but I bought some more. This was moving really, really nicely and it’s holding all the way up to after three o’clock and then the stock started to sell down.

If the stock had held up here at 58.75, let’s look here and see, if it had held up here at 58.75 that would have been an all time closing high. As it turns out it wasn’t, and so it was only that last 45 minutes or so that took the stock down back below this lower Bollinger Band. Now, you can say, “Oh, well that really means a lot,” and this and that. Well it’s information, it gives you information but we don’t get to pick and choose our data.

The bottom line is the stock did break out, and then it fell down and closed near the lower part of the intraday range. So that’s, I guess you could say quote “bearish”, but I’m looking at this and I’m going, “Something is happening with Mobileye ( NYSE:MBLY ) here, so I want to be long this stock.” I think you can be long this stock. You’ve got to look at support; it could be clear down into the low 50’s. If the stock breaks out to a new high here, above this high of 60.28, if it breaks above there then it’s probably moving a lot higher, so I think you can buy some now and some at a little bit higher level here.

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