Here’s my take on T-Mobile (TMUS) (August 31, 2016)

by DAN TMUS 
We’re looking at T-Mobile ( NASDAQ:TMUS ) today. This thing has a really, really good price action happening here. The daily chart, you can see just kind of a long, we could kind of draw even a cup and handle, though if your kid came home with this cup that he made in arts and crafts you would probably cuss out the teacher, it doesn’t look that great. But still, the dynamics are the same, a low here and then a retest of that low here. The stock comes up, breaks out above this high and has now pulled back to where? The 50-day moving average. It had defined support, broke down, it defined, basically, nothing at all, and now we’re back to support. So this is a stock you can buy.

The 50-day moving average is right here at 45.24, so you put stop, put it in the 44.00s, anywhere around there. You can even keep it really, really tight, just keep it a little bit below the 50-day moving average. Leave a little room for wiggle room, like you saw here. This is a uptrending stock that has been consolidating and is giving you a chance to buy. So you take some now, and then if the stock starts trading above 48.00 to a new high, that’s when you are adding to your position, but you are adding on your way up, not on the way down. Only losers add on the way down. And I’m not disparaging anybody, I’m saying that if you’re adding on the way down then by definition you are in a losing position. Don’t add to a LOSING position, you are only compounding something that you have been wrong about. Instead, add to a winning position. THEN you are compounding a position that you have been right about. Got it? Good!

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