I was asked today how I find stocks to trade. Well, pretty simply, listening. I listen for devices that are struggling because their stock is cheap. I NEVER buy things that everyone is telling me to buy. Why, because a rallying device is normally accompanied by a whole load of sellers just waiting at the top of that rally. The device gets high, the buyers run out and it drops.
ADA is one such crypto that has plummeted recently despite the Facebook Crypto forums being full of people pumping it like mad. “Don’t buy” to me means go look at the charts.
AZN Astra Zenica is one such stock. On Thursday 2 countries decided to hold on issuing their vaccine. This caused a rally in ICGN stock and AZN took a nosedive. It’s now a day later and I’ve bought in at a skimpy $48.25. Because I believe that its fortunes will change once they decide that the blood clots were not caused by the vaccine but by something else. If they are caused by the vaccine I still don’t think the stock will drop further because it’s already priced in.
AZN are in trouble – which is a huge driver to do something about it. A successful company sometimes rests on its laurels, success can be just as dangerous as failure. Success can breed lethargy, it can breed resting, having a drink or a party, while your competitors who are struggling pull their socks up and work hard to grow. That’s where AZN are. They are fighting against very successful competition and I’m hoping this will drive them and their stock on the up.
What about the technicals with AZN.
Sadly the technicals are not strong. Bearish in a downward wedge. The ATR is low probably because of the bad press. But that could change very suddenly if there is even a hint the company is entering recovery. Nice big ATR could push it back up as far as $58.00 which would be a great profit for me.
I don’t like buying this kind of chart, but I think the fundamentals warrant getting in early. Plus they pay dividends so at least I’ll get some return from that.
Be First to Comment