Here’s my take on Sony (SNE)
Discussed in this article: Sony Corp. ADS ( $SNE )
We’re going to look at Sony ( $SNE Sony Corporation (ADR) ). I actually heard from a viewer whose investment club follows some of my stuff and really wanted my take on Sony ( $SNE Sony Corporation (ADR) ) so here it is.
The stock came out of a volatility squeeze, which is really encouraging, I hope you were in there, I would say this is phase one; this big initial move where the stock peaked right there; phase two, which would be the pullback and the test of the squeeze, ended right there. So this is your new support level. Then we got a breakout above this prior high, so that’s the start of phase three.
The reason I’m walking you through this is simple, I think this pullbacks probably going to be an opportunity for you. I think the stock ultimately moves higher, you can see it’s been at a pretty substantial reversal here, a pretty obvious one. Heavy, heavy trading volume the last couple weeks, which really makes you think this stock is due for a rest.
What I would suggest doing here is waiting a bit; let the stock settle in. I don’t think there’s any risk that the stocks going to run up to $25.00 without you. Wait for the stock to settle in a little bit closer to $20.00 and then you can probably add to existing positions.
Another thing that you’ve got a look at is the 50-day moving average at 17.50. So $20.00, even then you may still be buying a little bit higher. Somewhere in between $20.00, we’ll say, and wherever that 50-day moving average happens to be, it will be higher over here, would be a safer place to buy this stock. Overall, there’s nothing wrong with the uptrend; now it’s just a function of entry.