Buy this one and watch this one…. ISIS and AFSI. (March 19, 2015)
The market wasn’t really rockin’ today, but a lot of biotech stuff is working. What I wanted to show you here in the Free Chart, I had actually been planning on doing ISIS ( NASDAQ:ISIS ), how’s that end of analysis? It’s been working sideways for a while, finally get a nice move higher today by ISIS ( NASDAQ:ISIS ).
Okay, back to what I was planning on doing, AmTrust Financial ( NASDAQ:AFSI ); how’s that? This is an IBD 50 stock; the fundamentals then are good, good growth rate in revenues. The stock though has been drifting sideways for a while, for several months here, so what I’m doing is this, it’s actually pretty simple. I’m just drawing a box around this puppy, then we can draw another one right here, and then another one right here, so you can see this thing is kind of coiled up.
What you want to do is wait here, the stock is at $58.00, give it a couple bucks. If the stock pulls back to say 54.00 then go ahead buy it but just know that you’re buying it and the stock is still boxed in, pardon the pun. Instead, what I would want to do is wait for the stock to breakout above 60.00. If it breaks out above 60.00 then that’s putting this stock in, I won’t say blue sky territory, I’ll say the green box. So behind the red box, comes in to the green box and you’re good to go.
On this one again, just know that the stock is consolidating, once it pops up through here this is when you want to be getting long the stock under the assumption that the sideways consolidation is over, the next leg higher has begun.
Free Chart