Our L Brands (LB) trade continues to work. Let it run a bit more. (May 31, 2016)

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LB, L Brands ( NYSE:LB ). I’m going to go back to the well here because I’ve been featuring this stock in these Free videos for quite a while. One thing I want to reiterate, or tell you the first time if this is the first time you are hearing it, in these Free Chart videos I’m actually really trying to help you make some money. With that said, another 1 percent today on L Brands ( NYSE:LB ). I talked about this a few different times last week, we can just look at it here on the daily chart, after this stock sold off again, and again, and again. I think it was back here where the big deal was, same store sales were stinking up the joint, it wasn’t even earnings. And then earnings finally came out, kept moving down, and then this was what looked like it COULD be the big bottom. The only doubt was that the stock closed very close to it’s open. Typically on a reversal you like to see the tail of a stock like this, you like to see the tail extend DOWN. In other words, the stock opens up here, trades down during the day. At some point all that selling runs it’s course, buyers swoop in and buy the stock and then it closes near the open. And then basically what that looks like is a “T” instead of this upside down hammer. It looks like a “T” with this big downdraft here.

So this was a little bit different. But you get confirmation that this is a bottom, at least a tradeable bottom this following day. When this stock is here at close to $64.00 you say, “We’re done here, $60.00, there’s no way this stock is going lower than this. And by the way, if there is, great! Boom! I’m out if my stop gets hit.” So we buy the stock. And then as soon as we buy the stock, you should have done it beforehand, but do it now. Look at the weekly chart and say, “How far could this move up?” On a weekly chart I’ve got to say 75.00, but at LEAST 70.00. So we’re looking at the daily chart, we’re right around 63.50 or so, 64.00. Now we look at this and say the stock can at least go to 70.00. So we’re kind of raising our price targets as the stock confirms. So now we’re up a few dollars on this. I’m just telling you I think you stay long the stock. Once the stock starts giving you these little red boxes again, if you are only in this for a trade, then go ahead and take your profits. But for the time being I think the stock still works. You’re late, at least relative to our videos here at Stock Market Mentor, you’re late but that doesn’t mean you can’t still make money, just make sure that you’re using a stop on the position.

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