Here’s what’s going on with BITA (Bitauto). (May 28, 2014)
I want to look at Bitauto ( NYSE:BITA ) today in this Free Chart video. The reason I’m looking at Bitauto ( NYSE:BITA ), frankly, one of the reasons is because Zillow ( NASDAQ:Z ), which I talked about, I’ve kind of been pumping that, for lack of a better term, for a while now because of this big cup that it’s been forming. It’s a really, really nice pattern, kind of a bowl right along the 50 and the 200-day moving average; zigzags, this is working. It’s hard for me to keep coming back to this and saying, “Hey, you know what I said before, well it still works.” So I’m finding a different one, it’s a tighter pattern, but the pattern is still the same. We’ve got a pullback, still above the 200-day moving average, which is actually a plus, it reveals how strong the stock is, but it’s been trading right through the 50-day moving average and is up 45.17, not quite to this yet high here, but this is a stock that I think works, it’s been kind of a bear killer, nice consolidation here.
So my suggestion would be go ahead and get long this stock, you can buy it right here. You can look at the weekly chart; it looks like it’s just getting going. To me it seems like $50.00 is a forgone conclusion. You might say, “Well that’s $4.75 Dan. No, it’s 10 percent, a little over 10 percent from where it is right now. If I start giving you $60.00, $70.00 price targets then I’m basically telling you that I think you’re pretty stupid to believe me. Well I don’t think that. We’ve got to take this thing one move at a time, that’s the way I take my trades, and it’s frankly, the way you should too. So we’re looking here at a price target of say $50.00 and that gives you a good risk reward profile, you’re looking to make 10 percent. You set a trailing stop so that you’re not risking 10 percent. I think this trade works; I think it’s going to work just fine. It’s up substantially on kind of a semi-sluggish day in the market; the market just won’t go down, but Bitauto ( NYSE:BITA ) just keeps going up, so there’s your trade.
Free Chart