Here’s how we’ve traded Teledoc Health ($TDOC) (January 22, 2021)

by DAN TDOC 
Teladoc ( NYSE: TDOC ); we opened up this trade in Teladoc ( NYSE: TDOC ) earlier this month, like on the 7th when the stock first popped out here; we put it on during the day here. The stock runs up, but it has kind of required patience, and you will often see this, a big move higher, the stock runs up after that, and then it starts to pull back.

If you are not careful you could say, oh my gosh, I am wrong, I have got to sell. No, you have to let the stock do its thing. Ebb and flow, oh crap, it pulls back again. Now it’s in a different box, it had been in a trading range down here, now it’s up here between 220.00 and 230.00 or 235.00. Boom, finally we get the same exact thing, we get the textbook double from what we got here when we initially bought it. This indicates that there are even higher prices to come.

You will notice this, on this move here, look at the volume, high volume. On this move here, look at the volume. This is institutional buying and they are buying a stock that has been in a basing pattern since July; that’s a long sideways move and this turns out not to have been a top. It turns out to have been consolidation; institutions are in again and the stock keeps moving up.

And then finally, what do we get? Today we get yet another move. This stock is really on a run. If you look at the weekly chart this is actually the first candle; this is the first bar that is actually showing a move to a new high. I wouldn’t buy it right here, we already own it, making good money on this.

I think you have got to just play the pattern and that means looking at what happens before where the stock runs up and then ultimately it does kind of pull back, and back and fill like it did here. If you are long the stock, keep your stop right here. If you are not long let the stock settle out for a few days and my bet is, you will be able to buy it somewhere down here.

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