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I just want to look at Ctrip ( NASDAQ:CTRP )
one more time here. I covered this over the weekend and
I'm pretty sure I covered it before,
but I may be wrong.
Anyway just to recap, this stock has been trickling sideways
and there were really two buy points.
The first one would be on another pullback,
the second would be on a breakout,
and the third one of course would be an average between the two. In other words
you start buying now,
and then keep buying, and then as the stock moves up to where
established resistance is then you either put in some tight stops,
just because we're kind of expecting the unexpected,
you always see when a stock hits resistance, you always want to be ready
to sell that,
because guess what? That's what's happened before so
typically you're going to expect it to happen again. But you can have a position as it
goes up into the top of the channel,
just on the chance that if it does break out you're not chasing,
instead you're sitting there with the smug grin on your face
happy that you bought it in the channel. Now my bet is that the stock's probably
going to break out. Forget about this stuff,
TC2000 had some data issues so it looks like the stock was closed for
trading for quite a while this morning,
not the case. Anyway, you can see though, the stock traded sideways
for quite a while, and then
we finally got a break out towards the end of the day and the stock closed
close to the intraday high. So
what I would suggest doing is, I think you can even buy the stock still
at this point, anticipate the break out a little bit, but only take a small
position, because I don't like anticipating
unexpected things. But in this case the way
some of these other travel and leisure companies are working, this looks like
it's only a matter of time before the up trend continues.