Is it smooth sailing for this cybersecurity stock? Check out $SAIL. (September 30, 2020)
SAIL
Let’s look at this stock ( NYSE: SAIL ). I noticed that IBD had covered this, I just saw the article right here at 11:00 or 2:00 Eastern, on SailPoint Technologies ( NYSE: SAIL ). I actually took a small amount of this stock when it initially broke out here today; a pleasant surprise. I like to use even numbers for the most part, when the stock broke out above 39.00, I got it somewhere near $40.00. Now it’s up a bit, we like this; this is what we want to see.
So what are the longer term and the shorter-term implications here? We are up on twice-average volume so there is something that’s working here, right? So let’s look at this on the weekly chart first. You can see the stock has been chopping around really, really nasty for a while. But if you look here, just start drawing a line, where did things change? Things changed here at about $34.00-$35.00 when the stock printed a new high that it hadn’t hit since 2018.
Now the stock is kind of off to the races. We could see this stock go a lot higher, particularly, if IBD is going to be covering it; that’s important. So if you are buying this stock now you could do what I am doing; I think that if the stock falls back below $39.00 then I am probably wrong to be in this stock. Although, with this kind of volume, that’s a real telltale sign, this is institutional buying. This is not Jethro and Austin putting their money together and buying a few shares.
This is some pretty big institutions so I have got to give it more than $39.00 because I could see institutions trying to knock this stock down so they could buy more. So instead, I am going to put my stop just a little bit below $38.00; 37.91 is the low, but who’s counting? I would put my stop, about 37.75, because if the stock pulls all the way back to this level here I really don’t want to be in that stock; because it just means that this was a fake-out, the stock can be grinding around for a while and I would just rather not have my money in it in that way.
I would rather just sell the stock and then monitor it and come back in when it’s a better opportunity. But for now, I think this works; I think you want to make sure you are protecting yourself. Don’t have a position that’s too big. Don’t have a stop that’s too loose or that’s too tight, it could be either way. But ultimately, I think this weekly chart shows a really nice uptrend, a really nice move. And then this shows a nice little stair-stepping pattern, a longer base here, I wish it was even longer, and then now we are pushing up to a new high. Again, I wish this was about a month longer base but we can only take what we get.
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