Here’s your trade on Euronet Worldwide ($EEFT) (December 19, 2019)

by DAN EEFT 
Euronet Worldwide, EEFT ( NASDAQ: EEFT ). This is really in kind of a beautiful pattern here. It is a cup and handle pattern; here’s the cup and then it is forming this, like, low handle. It’s in what I call a volatility squeeze, which I look at by just comparing the Bollinger Bands. Looking at the bandwidth where they are squeezing, this is in a really pretty tight range here where the width between the Bollinger Bands is just a little over 3 percent,

So when you look at this and then up until today this really wouldn’t have got my attention, there is nothing remarkable about this. I see this but I didn’t see this stock until today because I see a bazillion charts like this. I am looking at the volume here, it’s kind of average, and over the last week or two a lot of the volume bars have been kind of tall. This one, this one, the red ones and then this one is about average.

We have got kind of a mixture here where the upside here, green, was also above average but generally speaking if you just look at the way the moving average of volume, the 20-day moving average of volume, the direction that it is in, it’s kind of in sleepy town here. The volume is here and then it has drifted down, the moving average has drifted down so it is trading on lower than average volume. And so then finally we get this thing here today on almost twice-average volume, I look at this as a great opportunity.

Again, I wouldn’t have even looked at it yesterday, I wouldn’t have noticed it but today I notice it. The high is 58.57 and so I will tell you what I am going to be doing; if the stock trades above 58.57 tomorrow I am going to be buying that stock. And then I am going to have a stop probably clear down below the 50-day moving average, there is room for the stock to move to the downside. So a volatility squeeze, just a squirt right out the top; 58.57 is where I would look to buy that stock.

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