Thinking about buying Control4 Corp (CTRL)? Here’s your trade. (August 18, 2017)
I want to look at Control4 ( NASDAQ:CTRL ) today. This is the smart house stock, as opposed the dumb house stock I guess, which just sells light switches. I have got some lines drawn here, $25.00, and that was just from this last high;. Then 16.00, that was from the last buy, right here. This has been a pretty good stock. It continues to be a good stock, but right now I don’t believe it is actionable. The upshot for this video is, you want to stay long Control4 ( NASDAQ:CTRL ). I wouldn’t be buying this stock at 24.31. Frankly, I would rather buy it at 25.05. I would give up that 75 cents or so, because you want to see this stock actually break out above this resistance level. It needs to break out above here.
Here is why: Everything was kind of weak on Friday. The reason this was up is, because it was announced that the stock is going to be added to the S&P 600 ( INDEXSP: SP600 ) on Tuesday, that is the SmallCap Index. So if the stock keeps on moving up enough maybe it won’t be a SmallCap, maybe it will be a MidCap thing. Anyway, any index or ETF tracking fund has to be owning this stock. That is why you see this huge, massive volume spike here. It wasn’t because of earnings or any other thing. It is because it is being added to a major index. It is kind of the equivalent to something being added to the Dow 30 ( INDEXDJX: .DJI ) or something. That is why the stock moved up. Support is right here.
Fundamentally, the company has really, really high growth rates in earnings and revenues. So the fundamental story for this is compelling. If you are long the stock there is absolutely no way I would consider selling it, it is working. The stock needs to stay above the 50-day moving average, which is at 21.70. So you would literally set your stop right here, right below that level. Stay long the stock and if it breaks out above 25.00, that is when you are adding to that position, or, starting an initial position if you are not long already. I like Control4 ( NASDAQ:CTRL ), I think it works. It is a real rewarding stock to be owning. The 50-day moving average is working. You can look at the weekly chart, this was the all-time high but it was early 2014. Seriously, nobody cares about that, it is too far in the past, it is too long ago. This is, for all intents and purposes, at an all-time high. So you want to be owning this stock, I have just given you your entry points.
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