Here’s my trade on RealPage (RP) (July 19, 2019)
RP
I want to look at RealPage ( NASDAQ: RP ) today, here’s why: We’ve got kind of an interesting thing going; we’ve got a full China set here with a cup and handle inside a cup and handle. First of all, we look at kind of the big version here. It’s a little V-shaped but this is the cup and then this is the handle here. So you are looking for that kind of move, right? BUT, if we zoom in you can see that the handle is actually a cup and handle in its own right. This is the cup and this is the handle, down 5 out of 6 days so that’s not a good thing but it also kind of sets up a decent buy point for us.
If this stock and this is if not when the market is a little toppy, but if this stock starts to break out above, say, 65.00, that’s when I think you could look to buy this stock. You buy the stock, break out above 65.00 and maybe put a stop, a very, very snug stop right back here. Because your thesis, your underlying reason for buying the stock is, if the stock runs above 65.00 that indicates that there are a lot of buyers, so much concerted buying, that it has soaked up all the supply that had stopped the stock from going higher back here.
So this is like, okay, all that supply is gone, now we are moving higher. And so you don’t have to put your stop down here or anyplace else, you could say if the stock then falls back below 65.00 and undercuts this low here we’ll say then, I am definitely wrong. Okay, if I am wrong I want to be out of the trade. There is no second guessing on that, just if I am wrong I want to be out of the trade. But you don’t know whether you are going to be wrong until you can say exactly WHY you are getting into this trade. So I have just explained my reasoning, now you know why, let’s just see if the stock moves above 65.00 and see if we can’t make some money.
Free Chart