Since we are managing a potential year-end rally, I’ll get back to one of NFTRH+’s roots, which includes TA on individual stocks. And with it being party season (with an FOMC potential spanner in the works) and with my disclaimer that I am just charting and discussing what I am doing personally, not making recommendations, here are a couple daily charts on two former holdings, I’ve been watching and finally added this morning.
My positive view on many of these “bull stocks” will last only as long as long as their charts remain intact and/or my willingness to anticipate a year-end market rally. If that view changes, I change… on a dime.
ZS is a quality growth stock (Cloud security). It is also over-valued, as such growth stocks (e.g. CRWD, NET, etc.) tend to be.
It has been dropping hard after beating on earnings. But again, a growth stock. It did not beat by enough or say enough good things about what’s ahead to justify some casino patrons’ positions. Hence, a tank job, much like other tanks jobs in META, PANW, etc. that I bought.
The clear lower risk play would be to wait for a gap fill and test of support at 216. I did not wait for those because I have seen stocks decline to just above a gap and above support and then bottom and reverse upward without dropping to “no brainer” levels. So I added ZS with that in mind, while also aware it could well drop lower. But it is as oversold as it usually ever gets right now.
Bottom line: 216 would be a low risk buy, market willing at such time. It’s debatable whether it will get there or not. As a side note, if FOMC does turn out to be not what a majority expect and instead spooks the market, that’s the kind of thing that could drive a stock like this down further.
Gene editor CRSP dinged a lower low, but tested the SMA 200 (orange) and held it. It’s in a little pattern, which may or may not resolve bullish. But RSI and MACD are constructive and while it may mush around here for a while, I’ll consider holding it as long as it holds above the SMA 200.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
