Here’s a fresh look at Freshpet – July 2, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a fresh look at Freshpet ( NASDAQ: FRPT ).
I am interested in how this chart is trading because what tends to happen with Freshpet ( NASDAQ: FRPT ) following positive earnings is, it gaps up, at least it has, since November of last year. We had earnings in November, a gap-up, and then a run.
And then a new base developed, and then earnings again. And then a gap up, and then consolidation, and then earnings again, and then a gap up, and then consolidation. It gaps up on earnings, bases, gaps up again. Now, earnings on Freshpet ( NASDAQ: FRPT ) aren’t coming up until the beginning of August.
With the market near all-time highs, as you can see here on SPY ( NYSEARCA: SPY ) and on the triple Qs ( NASDAQ: QQQ ), I’m interested to know that if the market continues to make highs, we may see a bit of a change in character with Freshpet ( NASDAQ: FRPT ), where FRPT ( NASDAQ: FRPT ) may break out before earnings, as opposed to waiting for earnings.
I definitely want to see if this chart can get above and stay above, let’s say that 133.00 level, and push through, and do it on higher than average volume. Support is pretty clear here on Freshpet ( NASDAQ: FRPT ) right down near that 21-day exponential period moving average.
So for an initial stop loss, you could consider that 126.00 area, and then if the stock moves in your favor you’re moving up that stop to around today’s intraday low. And then if the stock continues to work, of course, you’re moving up that stop to lock in a potential break-even trade. So no matter what happens you’re not going to lose any dough.
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