Let’s follow up on Doximity! $DOCS – September 17, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to follow up on a chart that I shared with you about 10 days ago, Doximity ( NYSE: DOCS )
Ten days ago, I’m not sure if you remember, but the stock market looked horrible. We had a big bearish engulfing candlestick and the S&P 500 ( NYSEARCA: SPY ) closed under its 50-day moving average. That was this day here, we had a very bearish day and my timeline on Twitter went berserk.
I think I was reading tweets of everyone calling for SPY 4,000 or something like that. But ultimately the market has recovered, and I know we have the Fed Day coming up tomorrow so I just want to follow up on this trade. If you did take it, here’s how I would recommend managing this trade if you’re long in this stock right now.
Firstly congrats because this stock has moved up 10 percent since the day I did the video on it. So it’s had a nice rise in a short amount of time. At this point, I think you just want to focus on keeping any profits that you might have in this trade.
So what I would do is, I would move up some stop losses, one to the low of today, right around that 39.00 level. Maybe another one down here under the 8 exponential period moving average. And then another one just under that 8 day right around the 21 day. That will give you some flexibility, where it will allow you to take profits if it does fall.
But then ideally keep you involved, looking for a bounce off of, potentially, that 8-day exponential period moving average. And then give you an opportunity to deploy that capital back into the stock and take advantage of some of the ebbs and flows that the stock may ultimately give you.
We don’t have any guarantee that it is going to pull back, but that will at least keep you locked in and allow you to make a decision, Okay, do I want to take the rest of my profits? Do I just want to take it all off the table? It forces you to think about making another decision. And a lot of times, if you are all in all out, what can happen is that you have trouble getting back into that stock.
And so, if you at least have one-stop loss high, and then the other ones that are kind of low back down to the moving averages, it will allow you to take some profits but then stay involved and ideally ride the trend higher if it does, in fact, continue.
If it doesn’t continue, if you see more downside follow-through, then I would consider moving another stop up here, just right around that 8-day exponential period moving average. That’s just one way to manage this trade if you did take it. Once again, congratulations.
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