Some of our members had an over 40% Gain with $VRNA – December 20, 2022
VRNA
This is Scott with your Chart of the Day. I want to follow up on one of Dan’s active trades at StockMarketMentor.com. Dan Fitzpatrick has an Active Tread List of recommended entries and access. He sets up the whole trade for you, gives you the idea, and then it is kind of in your hands to take care of. This is one that was on his list today. We had some members in our forum talk about how they were enjoying a 40+ percent gain on VRNA ( NASDAQ: VRNA ).
Let me break down this chart for you. As you can see, the stock is holding in and around the 21-day exponential period moving average. That level has been acting as support even when it does get below they buy it back up. And so even if you get shaken out on moves like this, which in a market like this can look quite scary, you can always re-enter a stock if it proves you otherwise.
If I am buying a stock here, for example, and it closes below the 21-day maybe I will close it out. And then it does, you can say, Okay, well I got taken out from my risk; but oh, it firmed back up. Then with this new pullback bar, you have this new level to define your risk. And that is kind of a lot in terms of a swing trade, it is about an 8 percent risk. But you can fix that by managing your position size.
And so anytime someone is giving you a stop recommendation and it’s a little wide, just change your size, and then it’s not so bad. And so this stock just kept holding up around that 8 and 21-day after this little whoop-de-do. And then today we had some news and the stock popped. At one point it was up almost 50 percent. That’s a year-maker in my opinion, especially in this market.
This is just one idea that we have going over at StockMarketMentor.com. It definitely looks like it is going to be a stock-pickers market and we have some of the best, in terms of our membership at Stock March Mentor.
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