Within the context of a potential market blow off scenario that Fed policy seems bent on instigating, we continue to look for candidates that have not yet moved aggressively. On that note, CTRL, which can claim some of the ‘Internet of Things’ hype (iOt, another hype flavor added to last year’s 3D Printing/Additive Manufacturing?) in the home automation space.
The space is getting crowded with big boys Google, Microsoft and Apple involved but Control4 is a smaller niche player that could garner attention. With a forward PE of 24 and current price to sales of 3.2X, understand that this is nothing like a value stock and everything like a stock that could get momentum if the market continues upward and the iOt gets some good airplay. On to the chart.
After fanning upward from the May low CTRL found resistance at the SMA 200, which has just generated for this newer issue. It has been bull flagging with a downward bias since, creeping right along the SMA 50. Currently it is right at the middle Bollinger Band line, daily MACD and RSI have gone green and this looks like a buying opportunity for anyone interested in trading this stock.
The measured target is noted right up within a resistance area. The stop loss can be anything from conservative (loss of SMA 50) to a more tolerant upper black fan line and/or lower Bollinger. That is up to the individual.
As you probably know, I already own CTRL but had not seen this good a setup so had not NFTRH+’d it to this point.
Buy: Current level resting at the SMA 50.
Sell: Target of 22 or as suits individual needs
Stop Loss: Below SMA 50 (currently 17.73) down to 16.50.
I remind you that NFTRH+ updates are simply technical trade ideas to be used as a starting point for your own research. They are not recommendations as I am not a stock analyst.