Here’s my take on HubSpot $HUBS – April 1, 2024
This is Dan Fitzpatrick at StockMarketMentor.com. We got into HubSpot ( NYSE: HUBS ) on Thursday. I mentioned at the time that I thought it was maybe a little bit early.
You look at this, there’s nothing really special about this particular day. It could have been this day, it could have been any number of days. But I like the fact the stock was pretty close to the 50-day moving average, about 2.5 percent up, and just a little bit higher than that, higher than the intraday low the prior day of 609.50.
This looked like a low-risk entry. I like the fact it was right along the 50-day moving average. And so my suggestion was, let’s take a small position to begin with. And then the idea would be, frankly, if the stock broke out you’d want to add to that position above Wednesday’s intraday high.
The theory is, if the stock is going to, indeed, break out, we took a small position here, we don’t want to carry a small position clear up here. If we’re right, we want to be taking a little bit more stock at the earliest possible time. So we set a fairly loose stop, at least in my book, just because I didn’t want the stock to come back here, we got stopped out, and then ran up the other way.
So I’m going, “All right, if the stock falls below here, below this intraday low, I definitely don’t want to be long that stock. So that was really the stop and it was still only about 6 percent. I liked the entry, I just didn’t know if I had the right timing or not. And so, boom, now we get the move today. Yay for me, if you took this trade, yay for you too.
This is my suggestion, at this point, it’s up just 3 percent today, which is fine, but it’s not up that much from where this intraday high was. It’s only up a percent, a point above last Wednesday’s intraday high, so this is still in the buy range. This is still in the entry range, right here. If you look at the weekly chart you can see this is bumping right up against 650.00, and that is where I really see the first serious, serious resistance level right around 650.00.
Either way, on the daily chart or the weekly chart I think you are good to go if you’re taking the stock. And by the way, there’s absolutely nothing wrong with waiting for it to break through 650.00. There is nothing wrong with that because the idea, frankly is, if it breaks through 650.00,
I’m not sure why the stock couldn’t complete this really, really long and deep cup and handle pattern. I don’t like to be talking about stocks that have made a 70-some percent pullback, a cup and handle pattern. I think you get the point. Also, we can look at a different cup and handle pattern, where this is the cup and this is the high handle, and this is the breakout here.
There are a number of ways you can look at this. The whole point is, that you want to get a stock that is just starting to come out of some pretty reliable congestion, and that is what we have here for HubSpot ( NYSE: HUBS ).
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