Here is your trade on Samsara ($IOT) – April 21, 2023
Dan Fitzpatrick here, StockMarketMentor.com, and I want to look at Samsara ( NYSE: IOT ) today. The stock has broken out really, really nicely, I had looked at this on Monday, which is when I drew this resistance line that connected the top of this day here, from March 9th, to where it is here.
My contention was, once this stock, and if this stock breaks out above this 21.49 or 21.50 level, you are probably going to see some prices that are higher. And so sure enough, that’s what we got. The breakout actually started back here. If you look at this, volume was about average here over the last week and a half or something like that. But then it really broke out here, and then the following day even more.
And then over the last 3-days after that, it has still been drifting just sideways. Volume has been declining while the price has been staying where it is, and we want to see that. When a stock breaks out and then it just starts drifting sideways, if it is a healthy stock the volume will start shrinking. And what that shrinkage is, is an indication that buyers and sellers are both basically in agreement, as far as what the best price for the stock is.
Nobody is scrambling to buy as much as they can and having to chase the stock higher. Nobody is just banging the sell button and hitting the bid because they have got to get out of this stock. Everybody is going, Okay, $22.00, that seems okay to me, yeah, I like it there. And that is what we have here. And the fact that this is holding above the breakout point is a really bullish thing, it’s a real positive thing. And so I am looking for more upside from this.
Now, what would really make me happy is if the stock actually pulled back here one more time, and then gave us a rebound. If it gave us the ability to buy this stock one more time, not on the pullback but on an obvious rebound from the pullback. But if it doesn’t, and it might not, a lot of times the market doesn’t give you exactly what you are looking for, you can go ahead and buy the stock here and then just keep a stop right underneath the breakout level.
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