Scott wants to give this $BROS chart some Dutch Luv! – March 10, 2022

by DAN BROS 
This is Scott with your Chart of the Day. I want to give this BROS ( NYSE: BROS ) chart some Dutch love and I will tell you why; because as you can see BROS ( NYSE: BROS ) has been really just kind of chopping around this 50-day moving average. It gets above, falls back below and today it got above and closed above, actually the second day in a row that it has closed above the 50-day moving average.

Now, I think that is pretty significant because in the history of this stock when it gets above the 50-day moving average it gives you a nice little pop to the upside. So here we are, day 2 above the 50-day and I can actually draw some pretty clear lines on this chart. And anytime I can define my risk with clearly defined support and resistance, that is a chart I want to pay attention to, especially in this market chop.

I can see a clear resistance zone right here at around that $65.00 level. I can also draw this trendline all the way down and we have a couple of touches here. It’s not perfect but what is? Resistance, resistance, resistance, couldn’t get above, couldn’t get above. It finally got above, did it on good volume, and then we have follow-through here today.

I do have a small position here in BROS ( NYSE: BROS ) and I am just kind of letting it percolate now, like a coffee. And the reason for that, other than the opportune pun situation, is the fact that this stock can trade pretty wildly. It is not uncommon to have a $4.00 daily move up or down on this stock. It does trade a bit wide, and if you have seen it trade live, or seen level 2 you can kind of see that.

My main focus now on this trade that I bought here is just to build that cushion. And ideally, this stock will start to trend and give us some higher lows above the 50-day moving average, so that is what I am looking for here. But the fact that this stock is able to get above and close above the 50-day moving average, when a lot of other stocks like Apple ( NASDAQ: AAPL ), for example, are WAY below the 50-day moving average. That brings my attention to this chart because clearly, this stock is holding up pretty well.

Free Chart