Is it too late to buy Zagg (ZAGG)? Depends on your timeframe. (July 01, 2014)
I want to look at Zagg ( NASDAQ:ZAGG ). I mentioned a couple of days ago, that the stock was breaking out, and breaking out it has. The real question is this, is this, it too late to buy? We’ll look at the weekly chart, if you’re looking at the weekly chart I would say, no it’s not too late to buy, because it’s come down quite a bit, has formed a base, and now the stock definitely looks like it’s moving higher. We’re seeing a nice up tick in volume, with a big bunch of volume this last week, which makes this kind of a power move. It’s an up move through kind of key resistance levels here, this close for this week is the highest that it’s closed this year, again, on a weekly basis. So that was a big key indicator here, and then today the stocks up even more, pretty low volume, right? Well, that’s because it’s only Tuesday.
Let’s get back to the daily chart so you can see, this has just been a massive move. But you look at the volume; it has tailed off quite a bit, definitely tapered off quite a bit. So here’s what I would suggest doing, if you are long the stock keep a pretty tight stop on it. Make it literally a 2 or 3 percent trailing stop, because the stock is up over 10 percent, it’s up almost 20 percent really from, I would say, this breakout level here, so that’s a pretty good move. It is coming out of a base though, so I wouldn’t just be inclined to take profits, because now you’re ignoring this. So instead I think you want to stay long, but you want to keep a tight stop and then if the stock does in fact come down a bit don’t just buy it, wait for support and then buy it. You want to wait for support and that’s when you buy this stock.
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