You’ll get a sugar high from Insulet ($PODD) – November 8, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at Insulet Corporation, PODD ( NASDAQ: PODD ). This stock was covered today.
First of all, the stock’s up 9 percent today, so you’re chasing it if you’re buying the stock on Monday if you’re seeing this. It’s up 9 percent here, I think, especially, in light of the way the stock traded down into the close. The idea here would be, hopefully, we get the stock to pull back a bit and give a better opportunity to buy right around 250.00 or so.
This is an obesity stock just like some of these others with automated insulin delivery for diabetes, things like that. It’s a pretty important industry, and this is a pretty important stock or a pretty important company. You can see right here on the weekly, that the real resistance here was about 240.00, and the stock ran up, it screamed higher.
What my suggestion is, first of all, earnings are out of the way, that’s why the stock did what it did. But I would let this play out for a couple of days, don’t be rushing into buying here. If we turn these standard deviation bands or Bollinger Bands to three, three standard deviations, you can see the stock is well outside three standard deviations.
Stocks trade or at least close within three standard deviations, literally like, 99.9 percent of the time. This is kind of breaking the law of mathematics here. And so sooner or later the stock is going to pause or maybe even come in a little bit. And so what I would suggest doing is to watch this stock. If you’re long the stock, I don’t even know if I’d suggest taking profits on any of it. It’s only up 10 percent, so it’s not that big of a deal if you’re holding the stock.
But if you’re looking to buy, just waiting for the stock to come down to around 250.00ish, maybe even 255.00 if you can get it, that’s 5 percent. Where I’m coming from, 5 percent, one way or another does matter. Anyway, that’s the way I would do it.
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