Here’s how I’m trading Doximity ($DOCS) – August 11, 2021
DOCS HOOD
I want to look at Doximity ( NYSE: DOCS ) today. Just yesterday I was covering this stock and I had mentioned that if the stock broke out right around there. This is an IPO, so if it ran up to a new high, this was the initial high, I call this the enthusiasm high. That’s like Robinhood’s ( NASDAQ: HOOD ) enthusiasm high basically happened at the open and then a week or two later people got really enthusiastic.
But when the stock runs up here and then it peaks, then it trades back down this is a huge wall of selling right there. You have just got to pay attention to that. If you are trading it lower than this level you can do that but it’s a separate trade. You are not really trading an IPO, you are trading a chart.
You will notice the stock comes up here to this general level, it ultimately kind of gets there, but basically this level, we’ll say here, this is really kind of holding. And so then when the stock pulls back you have to look at this, there it is, it climbs back up, oops, it’s not quite there, it pulls back. You have to look at this and you see the higher low than it was here. You say, alright, this was a stock that is kind of slowly building. It is slowly regrouping on the sell-off so I still don’t want to buy.
But if the stock runs up above this level then that tells me that we are probably going to move even higher. So I had set an alert for our members, I don’t know if a lot of you guys got it in the forum but I did notice several of you were saying DOCS. This turned out to be a good trade today. Now, I wasn’t looking at it so I sure wouldn’t have bought it at 60.00 or 61.00, I hope you did. But once it got up to my trigger here, with my style of trading that’s when you would have jumped on this.
It’s very similar to Robinhood ( NASDAQ: HOOD ), where we got in the stock very, very early on this trade because I was seeing what was happening back here. Once the stock runs up above 42.00, I think we were in at $42.00. Once it breaks up above 40.00 then you have to look again for another move higher. By the way, these are just lines that I had drawn when I was showing our members how to really be setting staggered stops. As you are trading a stock you keep rotating your stops up so you can protect against the downside while still maintaining plenty of upside exposure, so that is what those are.
That’s Robinhood ( NASDAQ: HOOD ) but what I am talking about here is Doximity ( NYSE: DOCS ). I think this stock could even go higher from here. I would just suggest that you use stops, this is such a volatile thing, 35 percent today, so it’s a big volatile thing. If the stock starts turning around don’t hang onto it because it could be an Icarus stock. But as long as the stock is still going up just keep a trailing stop on that.
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