Looking for a solid company at a good buy point? Consider Globant ($GLOB) (December 20, 2019)

by DAN GLOB 
Globant ( NASDAQ: GBT ); This is a stock that use to be on our Growth Stock List but then when it fell out of favor here I took it off of the list, I just want to be long stocks that are making money. And then I have totally ignored it, every once in a while I will mention it to members but not that often, frankly. Over the last couple of weeks I have seen how the stock has been printing lower lows, lower highs. It has kind of come in for what I call a touch and go on the 50 and the 200-day moving average, just starting to move out again. And then I see the stock just today, on Friday, start to break out above this resistance level.

I think this is a really good stock for you to own right now. The better entry was yesterday, frankly, but this is okay too. It is up 4 percent, almost 5 percent today. The idea is that this is getting ready to roll and move much higher so you can even buy this stock now. Hopefully, maybe on Monday if it pulls back a bit you can get it at a lower price. And then you keep your stop just a little bit below $99.00, maybe around $99.00. Give the stock a little bit of room but you don’t want to give it too much.

The idea is that with this kind of pattern this stock can break out nicely going forward. Particularly since today’s move and yesterday’s as well was on heavier than average volume. And all during this sideways move it has been generally on lighter than average volume. So you want to see, during sideways consolidation phases, you want to see low volume. And then when a stock starts to move out of consolidation you want to see increasing volume and that is exactly what we are seeing here.

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