After a brief cooling off period, this solar stock is heating up again…or at least, it’s about ..
Discussed in this article: JinkoSolar Holding Co ADS ( $JKS )
We’re looking at JinkoSolar ( NYSE:JKS ) here, and you can see why. That’s first point, second point, the shortest distance between two points is a straight line it’s not a trendline. But when you get a third point where you can draw that straight line and touch the third point as well, that would be known as support. So we’ve got a low, draw the line, maybe support, and then finally a pullback, and then a bounce, definitely support.
Okay, so you get the point, I can keep drawing arrows all day if you want, they’re free. So with JinkoSolar ( NYSE:JKS ) in a really nice uptrend, when is a really good time to buy this stock? The good time to buy it would have been back here, but we can’t go back there, we don’t have flux capacitors, so the best time to buy this stock now is pretty much right where it is right now.
The stocks at 22.52, I would be careful about saying, “Okay, well I need a stop to manage my risk so I’ll keep it down at 19.00,” which was about this low. That’s over 10 percent that you’re going to take a pullback before you even know whether you’re right or not, or whether you were just a little late in the buy, but the supports going to hold.
So instead if your going to buy the stock now maybe start out with a little bit of a small position, a little bit smaller than you might normally do, and then if it does indeed start to move higher tomorrow, then go ahead and add to the position because you’ve got a trade that’s working, and then you want to expand your risk as the trade continues to work. I’ve talked about when to be aggressive, the time to be aggressive is not right here, but it’s really right in this area. So we’re really close to being aggressive here, and I think this trade will work for you.