Thinking about a second income? Here are some thoughts on daytrading…and a swing trade on FOXF. (May 24, 2019)
FOXF AMBA QCOM FOXF
Let’s look at Fox Factory ( NASDAQ: FOXF ). Here’s why; as I analyze this chart it seems to me like the next trading day, which isn’t until Tuesday, this could give us a nice setup, just a nice technical setup, a rebound to the upside. Not a breakout, this wouldn’t be a breakout. When you draw the box around the prices over the last few weeks and it looks like this, this is all red. Everybody who bought in this box is not particularly happy.
But, what we saw here was a big climax on Thursday, a big selling climax. A big tag of the 200-day moving average and then a snap hook reversal on Friday. A gap up that didn’t look back and then closed near the high of the day; not on strong volume and that is why I am looking at this thinking we could get some more buying interest here.
If this stock breaks out this would be your trade: If the stock starts breaking out above $68.00 on Tuesday, if it does it on Monday, hey good for you, you are the only one trading. If it does it on Tuesday, frankly, look for 2, 2.5 percent. Look for like a move up to $70.00. It could go up higher than that but I believe in modest goals and you are more likely to hit them, at least in trading, in life, set the big ones. Look for about $2.00, $2.50 or so on this trade.
The thing that is really nice about it is, you can set a stop that is maybe 2 percent. I guess you could take it all the way down here below Thursday’s intraday low. But frankly, if you are buying this stock on an anticipated rally higher then you should not be allowing the stock to move against you to a new low. That means your ego is involved and you don’t want to have an ego involved in your trade. You want to be looking at your money and always be thinking, Right now, am I happy owning this stock or should I be owning dollar bills instead? If you are not thinking about it along those lines then you are going to have kind of a problem trading.
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