Here’s your trade on Insulet ($PODD) – May 12, 2023


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This is Dan Fitzpatrick here, Stock Market Mentor, and I want to look at PODD today, Insulet Corp. ( NASDAQ: PODD ). Here’s the thing, this has been trading sideways for quite a while. It had, what I would just say, a failed breakout back here.

You will notice the volume, this has typically been a fairly low-volume stock, back here, 250,000 shares, and then we got some real institutional activity sparked up here. And since that time, actually, the volume has been greater.

If I change this to, say, from 50 down to 20, the 20-day, then you will see that this had been really, really big. And then, boom, it is more than 20 days and then this suddenly drops off, that’s just the nature of moving averages. This has been the stock’s trading volume right here, but when we got to here, this is essentially twice the average volume, this is institutional buying.

Nobody in a day trading chat room got together and said, Let’s buy this stock, so this was big volume, but it didn’t hold into the close. You can see, a big, big move up here, and then that was it, then they took their foot off the gas and the stock just settled in. But since that time, it has kind of been gradually moving higher.

So we got this big move, it is kind of like an aborted breakout, it just stopped. And then after that, we get the pullback, and then since that time this has kind of been gradually climbing, and then just finally today, it breaks out above 330.00. And so this was our trade, if you are not a member, we took it at 329.78 today.

My suggested stop is 321.70, just right down here. You don’t need to give this a heck of a lot of room right now for a couple of reasons. First of all, the stock has been in a trading range. And until we get a clean breakout that just keeps going, any breakout is suspect, and that means this one as well.

So you go ahead and say, Alright, I will put my chips on the table, just a few of them. But if the stock completely retraces today, which is down to 321.73, then I think you want to get out of that trade and say, Alright, well, we got faked out again. Lucy and Charlie Brown, she jerked the football, I know I am wrong, I’m out of here. So 321.70 is the stop, that is literally 3 pennies before today’s intraday low. Anyway, that is how I would trade it.

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