Here’s how I’m trading Stericycle ($SRCL) (April 30, 2021)


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I wanted to go over Stericycle ( NASDAQ: SRCL ) and this is why; I bought some of this today. I started a position yesterday somewhere around here. It wasn’t super low, it was somewhere in this trading range. You could say, well, why would you do that when it was up so much? Because from a proper breakout at one point it was up this high and that’s almost 2.5 percent. So if I am buying this right above this proper breakout point, which would be when it eclipses here, then I am buying around 71.50, something like that, but I am pretty sure I bought it a little higher.

Now today, I actually added more. And you would say, well Dan, why did you do that? You bought high and then you bought even higher so that was dumb. And now you are dumb enough to show us that this is what you did. Wow, you must have a death wish. Not so much; this is why, because I am looking at this and I see a base that is almost 6 months in duration, that’s a long base.

I also see, you can’t really call this a volatility squeeze per se, but this was a pretty nice channel, a pretty nice setup right here. I wouldn’t buy this but it would get my attention. It’s kind of like Baidu ( NASDAQ: BIDU ) got my attention a while ago when it was super low and then it ultimately doubled or whatever the case may be, it doesn’t matter, that trade is done.

I look at this and I’m saying, “Alright, I can’t buy this but it sure looks like something is perking up.” And then you say, alright, I’m still not really in. Boom, there you go. Up until this, this had just had possibilities, not a whole lot different than any of this here. There was nothing different about this. You could say, oh yeah, but it traded above 70.00. That’s like results-oriented reverse engineering. You are never going to see this unless, for whatever reason, you are really, really itching to buy Stericycle ( NASDAQ: SRCL ) you might look at this and take note of it. But let’s be real, this is, boom, when you are looking to buy, right here.

And then today we get a nice continuation. So I put this on the Active Trade List just today. I didn’t have a chance to get it out yesterday, I guess that makes me greedy because I bought it. Now that trade is up between 3 and 3.5 percent from where we bought it. That’s kind of a high risk because the stock could pull back 4-4.5 percent before you would really feel like, wow, I’m wrong on this.

This was my reasoning, The weekly chart, I look at the weekly chart and I see this, I see all of this mess. This to me looks like it is just getting going. Like it is just getting going from here and I am kind of looking for a move through 80.00. But I could see this doing the sideways boogie here. But ultimately I can see this thing running to 90.00 just as a function of this volatility squeeze. It had this volatility squeeze on a weekly chart and you can also see it really on the daily chart. Like I said, it’s a little bit of a hybrid but you get the point.

It’s too late to buy it now, the third time is not the charm. But what I would suggest doing is watching this stock if you didn’t get it. I know a lot of our members did because I put this out today. But if the stock goes up look for a pullback and it just depends on how deep the pullback is. What you want is, you want to wait for the first move higher. That’s when you are a buyer with your stop just a little bit below this most recent low. If it does this, this is when I will actually be adding to the position. I just thought I would lay that out for you so at least you can see what I am doing.

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