One last look at Ctrip (CTRP) before we move on to other stocks.
Discussed in this article: Ctrip.com International Ltd. ( $CTRP )
I just want to look at Ctrip ( NASDAQ:CTRP ) one more time here. I covered this over the weekend and I’m pretty sure I covered it before, but I may be wrong. Anyway just to recap, this stock has been trickling sideways and there were really two buy points.
The first one would be on another pullback, the second would be on a breakout, and the third one of course would be an average between the two. In other words you start buying now, and then keep buying, and then as the stock moves up to where established resistance is then you either put in some tight stops, just because we’re kind of expecting the unexpected, you always see when a stock hits resistance, you always want to be ready to sell that, because guess what? That’s what’s happened before so typically you’re going to expect it to happen again.
But you can have a position as it goes up into the top of the channel, just on the chance that if it does break out you’re not chasing, instead you’re sitting there with the smug grin on your face happy that you bought it in the channel.
Now my bet is that the stock’s probably going to break out. Forget about this stuff, TC2000 had some data issues so it looks like the stock was closed for trading for quite a while this morning, not the case. Anyway, you can see though, the stock traded sideways for quite a while, and then we finally got a break out towards the end of the day and the stock closed close to the intraday high.
So what I would suggest doing is, I think you can even buy the stock still at this point, anticipate the break out a little bit, but only take a small position, because I don’t like anticipating unexpected things. But in this case the way some of these other travel and leisure companies are working, this looks like it’s only a matter of time before the up trend continues.