Happy Sunday everyone.
There are two stocks that I will be planning on buying on Monday’s open. These two stocks are ARLO and SBH. These purchases are slightly against my trading rules of only buying uptrending stocks, but they fulfill the buying at support and selling at resistance. Since these trades will be in my Roth IRA, I plan to hold these for much longer times (6 months to 3 years) since I won’t need to pay taxes on capital gains 🙂
I took a quick peak at insider activity (large purchases in the last 3 months for SBH and 12 months for ARLO) as well as key levels on the charts before making my decision.
Below are ARLO’s daily and weekly charts
ARLO weekly chart below:
My current plan is to sell or move my stop loss up when the stock reaches the 4-7 range.
Again, any prices near that previous low around 2.80 means I am selling.
Next we have SBH, which has a similar looking chart pattern. Below is the weekly chart. The plan is to also buy this stock at market open on Monday (unless prices are much higher), and put a stop loss at 11.79 (1 cent below this week’s low) and a profit exit near 20. This trade may take up to a year, unless the stock moves and clears out the stop loss quickly in which case we will take a loss.
These trades look like they will be considered “position trades,” with the most recent position trade I made being Facebook.
Enjoy the rest of your Sunday, and see you for more discussions next week!