Let’s take a look at Novocure ($NVCR) and Tesla ($TSLA). (November 20, 2020)
TSLA NVCR
I am still looking for a bigger move on Tesla ( NASDAQ: TSLA ). Once the stock had gotten up above 462.00, that was the buy. Now the stock has been up above 500.00, at least trading above 500.00 for a couple of days; this is ultimately what the chart looks like.
We are looking for more from this; however, looking for more is not the same as demanding more. We just want to take what the stock gives us and right now this is another one where the next entry point; 508.61 was this high on yesterday. I think you have got to wait for it to clear that. Once it gets above 508.61, that’s when you want to be back into this stock
Novocure ( NASDAQ: NVCR ); this was my stock yesterday. I got a lot of comments on this in the forum today because people made some good money on it. I like it when a stock jumps up over 5 percent in a day, the day after I feature it; it makes me feel good as well as my wallet.
In this case you’ve got to look at the volume. The volume is really heavy here today so there is some real buying in here. I am looking at the fundamentals here on MarketSmith. The number of funds that are in this stock are actually pretty consistent, there is not a lot of growth there.
But if you look at the weekly chart you can see how the stock has kind of traded sideways and then fell lower. There’s almost a couple of cup and handle patterns here and then finally we are up here in this range.
I think the stock is poised to go even higher. If you are buying this stock definitely keep your stop below 120.00. If this breakout is real it should not fall back below 120.00. Anything else, if comes back into the mid 120.00s, something like that, that’s really okay. I would prefer it not, but that’s not the way trading works. So any move that stays above 120.00, in my view, that’s a normal move. Anything below that is definitely one where you want to get out.
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