{"id":3728,"date":"2014-02-13T12:15:12","date_gmt":"2014-02-13T17:15:12","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=3728"},"modified":"2022-04-06T15:05:47","modified_gmt":"2022-04-06T19:05:47","slug":"scty-winning-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/scty-winning-breakout\/","title":{"rendered":"How To Build A Position In A Winning Stock Trade (And Let Profits Run)"},"content":{"rendered":"

\"$SCTYOn December 19, we bought SolarCity ($SCTY)<\/strong>, one of the top stocks on our watchlist, then added to\u00a0the position as the stock surged higher.<\/p>\n

Two weeks after our second buy entry, we locked in a solid gain of 25.8%<\/strong> by selling partial share size into strength of a powerful rally.<\/p>\n

Now, we still remain long the original position we bought in The Wagner Daily<\/em><\/a><\/strong> newsletter nearly two months ago (presently showing an unrealized price gain of approximately 42%<\/strong>).<\/p>\n

In this new 5-minute video, we walk you step-by-step through the trade,<\/strong> explaining the rationale behind each entry point (as well as the first exit point).<\/p>\n

We also share with you the exact technical criteria that prompted us to buy $SCTY<\/strong> in the first place.<\/p>\n

For best viewing quality, view in full-screen mode by clicking the icon on bottom right side of the video player window:<\/p>\n

httpvh:\/\/youtu.be\/65EUp-uku6c<\/p>\n

To recap the trade entries and exits from the above video in text format, here’s how this high momentum stock trade went down…<\/p>\n

$SCTY was already one of the top stocks on our internal watchlist. We\u00a0monitored the price action of $SCTY as it pulled back to support of its 50-day moving average.<\/p>\n

The stock subsequently bounced, held support of both its 20 and 50-day moving averages, and the trading range tightened up.<\/p>\n

After a shallow pullback on light volume (which is bullish), we bought $SCTY at $53.94 on December 19 (above the prior day’s high). Strong volume confirmed that day’s momentum-fueled breakout.<\/p>\n

Following up that surge by forming the handle portion of a cup and handle<\/em> pattern<\/a> on light volume, we bought additional shares of $SCTY at $57.88 on January 2 (again, above the prior day’s high).<\/p>\n

The stock then gapped to new highs on strong volume, traded sideways again, rallied higher on increasing volume, then pulled back on lighter volume (touching near-term support of its 20-day exponential moving average).<\/p>\n

We then sold the shares from our January 2 buy entry at $72.84, locking in a gain of 25.8% from our $57.88 entry point.<\/p>\n

We remain long the original shares (from December 19 entry), which are currently showing an unrealized gain of roughly 42% (as of February 13 close).<\/p>\n

Want to make sure you profit from our next winning stock pick? Subscribe now<\/a><\/strong>\u00a0to our nightly swing trader newsletter (as low as $2 per day with annual subscription).<\/em><\/p>\n