Thinking of buying Qorvo ($QRVO)? Here’s your strategy. – March 22, 2021
QRVO
I want to look at Qorvo ( NASDAQ: QRVO ), which is different than Cuervo Gold; there is never a bad time to buy Cuervo Gold.
Here I have a little different take on this. I know IBD put this out today as their Stock Of The Day, it is a chipmaker. They weren’t saying to buy it now, they were giving you 2 buy points. To be honest with you, I don’t know what those are, I don’t generally rip off an article from IBD or any place else, I do my own work but this is one that has been on my Trending List.
The stock is still in this range, this box here is automatic. It expands to cover the low and the high within the range so we could drag it and make it closer in time. But even then you have got to look at the stock and say we are not quite ready to buy yet. I would look at it as Wednesday’s intraday high, 185.70, Tuesday’s intraday high, 185.86, so at least 185.70 is your entry point. I would say 185.90 would be more like it, so you are buying it right here, this would be a good time to buy.
However, another buy area for you would be IF the stock pulled back to, say, the 50-day moving average, right around 175.00ish, you could start a position there. Because the thing is, this low here is a higher low than this one down here. It is reliable support, it is sufficiently reliable to make a decision, as far as buying a stock on a pullback. And your thesis is, this low here last Friday on the 19th, I think that is a significant low.
So my thesis is that the stock is going to stay above that level. If it falls below that level then I am wrong and I need to get the heck out. The issue is, if you are buying it right now that’s a 5 percent pullback before you even figure out whether you are wrong or not.
On the other hand, if the stock runs up to, say, 190.00, which is this last high here, that’s when you can expect some profit-taking. So your PRACTICAL upside target is 4 percent, but your risk is now 5 percent. That is why I am saying this is not a good entry for this stock. Not right here right now.
I think you want to wait for this thing. The best-case scenario, if you are kind of a value type investor this is a company that is growing. Revenues are growing really, really nicely, so are earnings. In fact, so are margins, so this company is firing on all cylinders but the stock is not. If we get some kind of a market sell-off and you can get this down $15.00 cheaper or something like that, that would be a great time to enter this stock.
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