{"id":8146,"date":"2021-02-04T17:53:21","date_gmt":"2021-02-04T22:53:21","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=8146"},"modified":"2022-04-06T15:04:54","modified_gmt":"2022-04-06T19:04:54","slug":"pullback-trading-fuv","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/pullback-trading-fuv\/","title":{"rendered":"Arcimoto: How We Scored a Quick +28% Gain with a Low-Risk Pullback Trade Entry [$FUV]"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><a href=\"https:\/\/www.arcimoto.com\/media\/photos\" target=\"_blank\" rel=\"noreferrer noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"2000\" height=\"1000\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/fuvheader-e1580955365285.jpg\" alt=\"Acrimoto FUV photo\" class=\"wp-image-8174\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/fuvheader-e1580955365285-110x55.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/fuvheader-e1580955365285-300x150.jpg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/fuvheader-e1580955365285-768x384.jpg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/fuvheader-e1580955365285-1024x512.jpg 1024w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/a><figcaption>FUV &#8211; Trading Acrimoto stock is nearly as fun as driving their Fun Utility Vehicle<\/figcaption><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/pullback-trading-fuv\/#Missing_an_explosive_stock_breakout_can_be_disappointing_but_patient_traders_can_also_generate_massive_gains_by_simply_waiting_for_a_low-risk_pullback_entry_that_often_follows_Heres_how_we_used_this_winning_pullback_trading_strategy_to_score_a_28_gain_in_Arcimoto_FUV_in_just_a_few_days\" >Missing an explosive stock breakout can be disappointing, but patient traders can also generate massive gains by simply waiting for a low-risk pullback entry that often follows. Here&#8217;s how we used this winning pullback trading strategy to score a +28% gain in Arcimoto ($FUV) in just a few days.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/pullback-trading-fuv\/#Low-risk_Buy_Entries_Allow_For_Tighter_Stops\" >Low-risk Buy Entries Allow For Tighter Stops<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/pullback-trading-fuv\/#The_Pullback_Buy_Setup\" >The Pullback Buy Setup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/pullback-trading-fuv\/#The_Exit_Strategy\" >The Exit Strategy<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Missing_an_explosive_stock_breakout_can_be_disappointing_but_patient_traders_can_also_generate_massive_gains_by_simply_waiting_for_a_low-risk_pullback_entry_that_often_follows_Heres_how_we_used_this_winning_pullback_trading_strategy_to_score_a_28_gain_in_Arcimoto_FUV_in_just_a_few_days\"><\/span>Missing an explosive stock breakout can be disappointing, but patient traders can also generate massive gains by simply <em>waiting<\/em> for a low-risk pullback entry that often follows. Here&#8217;s how we used this winning pullback trading strategy to score a +28% gain in Arcimoto ($FUV) in just a few days.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When swing trading stocks, it is crucial to continually maintain a solid watchlist of stocks to potentially buy on strength <em>and<\/em> weakness. <\/p>\n\n\n\n<p>While reviewing your watchlist on a regular basis, you will inevitably encounter an explosive growth stock that broke out and rocketed higher&#8211;<em>but without you in it!<\/em><\/p>\n\n\n\n<p>Although it is easy to feel that you&#8217;ve missed out on potential opportunity when this happens, there is no need to be discouraged.<\/p>\n\n\n\n<p>Rather, simply place it on your watchlist and monitor for a low-risk buy entry, such as an orderly pullback to the rising 10 or 20-day exponential moving average.<\/p>\n\n\n\n<p>Subscribers of our flagship swing trading report, <em><a rel=\"noreferrer noopener\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">The Wagner Daily<\/a>,<\/em> recently netted a +28% gain through buying a pullback in Arcimoto ($FUV) and selling just six days later.<\/p>\n\n\n\n<p><em>Continue reading<\/em> to discover exactly how you too can profit with this basic strategy for buying pullbacks of explosive breakout stocks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Low-risk_Buy_Entries_Allow_For_Tighter_Stops\"><\/span><strong>Low-risk Buy Entries Allow For Tighter Stops<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When we added $FUV to our <em>Wagner Daily <\/em>watchlist, the stock was already consolidating for several months, after digesting a massive +200% rally in November.  <\/p>\n\n\n\n<p>When trading volatile and fast-moving stocks like $FUV, we focus on finding low-risk buy entries because they allow us to enter with protective stops of less than 10%. <\/p>\n\n\n\n<p>For many explosive stocks, it can otherwise be difficult to utilize such a relatively tight stop.<\/p>\n\n\n\n<p>This is especially true when buying such a stock on a breakout, rather than a pullback.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"684\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/AdobeStock_286041423-1-min-1-1024x684.jpeg\" alt=\"breakouts and pullbacks\" class=\"wp-image-8180\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/AdobeStock_286041423-1-min-1-1024x684.jpeg 1024w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/AdobeStock_286041423-1-min-1-110x73.jpeg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/AdobeStock_286041423-1-min-1-300x200.jpeg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/02\/AdobeStock_286041423-1-min-1-768x513.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"mce_17\"><span class=\"ez-toc-section\" id=\"The_Pullback_Buy_Setup\"><\/span><strong>The Pullback Buy Setup <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As shown on the chart below, $FUV cleared resistance at the $15 to $16 range on January 11 &amp; 12, on a pick up in volume (a bullish signal).  <\/p>\n\n\n\n<p>We did not buy the initial breakout, but placed $FUV on our radar to monitor for a potential pullback or <a rel=\"noreferrer noopener\" aria-label=\"bull flag (opens in a new tab)\" href=\"https:\/\/www.investopedia.com\/stock-analysis\/cotd\/answ20090105.aspx#:~:text=Updated%20Jan%205%2C%202009,from%20a%20period%20of%20consolidation.\" target=\"_blank\">bull flag<\/a> type entry.  <\/p>\n\n\n\n<p>$FUV pulled back to the $15-$16 area on January 14, 15, and 16, where it found support of its rising 10-day exponential moving average and prior horizontal resistance level (which became the new support).  <\/p>\n\n\n\n<p>Volume decreased on the pullback, which is a bullish sign that tells us the sellers are not immediately stepping in when the buyers take a break.<\/p>\n\n\n\n<p>The <a rel=\"noreferrer noopener\" aria-label=\"inside day (opens in a new tab)\" href=\"https:\/\/patternprofits.net\/2020\/07\/inside-outside-candles-101\" target=\"_blank\">inside day<\/a> that formed on January 16 was key,  as it indicated a tightening of price volatility. <\/p>\n\n\n\n<p>The daily chart of Acrimoto below shows the pullback buy setup at the time of entry:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"789\" height=\"825\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV1.png\" alt=\"\" class=\"wp-image-8148\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV1-105x110.png 105w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV1-287x300.png 287w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV1-768x803.png 768w\" sizes=\"auto, (max-width: 789px) 100vw, 789px\" \/><\/figure>\n\n\n\n<p>Volatility eventually needs to expand after it contracts, but the price can resolve in <em>either<\/em> direction.<\/p>\n\n\n\n<p>However, since $FUV was a light volume pullback within a bullish consolidation, we knew the odds favored an upside volatility expansion <em>if<\/em> the price takes out the high of the inside day.<\/p>\n\n\n\n<p>As such, we listed $FUV as an official buy setup in the January 20 issue of our <a rel=\"noreferrer noopener\" aria-label=\"swing trading report (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">swing trading report<\/a>.  <\/p>\n\n\n\n<p>Arcimoto triggered our buy entry when it rallied above $17.26 that day, closing the session with an unrealized gain of +6%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Exit_Strategy\"><\/span>The Exit Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>$FUV ripped approximately 20% higher just one day after our pullback buy entry, prompting us to alert subscribers that we were selling <em>half<\/em> of the position into strength for a +26% gain (on January 21).<\/p>\n\n\n\n<p>We intended to keep a loose stop on the remaining shares to maximize profit, but significant relative weakness in <a rel=\"noreferrer noopener\" aria-label=\"growth stocks (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\">growth stocks<\/a> on January 25 and 26 made us a bit cautious.<\/p>\n\n\n\n<p>As such, we decided to aggressively raise our stop to lock in a +30% gain, which triggered on January 27.  <\/p>\n\n\n\n<p>The exit points on the $FUV pullback trade are annotated on the chart below:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"789\" height=\"825\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV2.png\" alt=\"\" class=\"wp-image-8150\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV2-105x110.png 105w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV2-287x300.png 287w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2021\/01\/FUV2-768x803.png 768w\" sizes=\"auto, (max-width: 789px) 100vw, 789px\" \/><\/figure>\n\n\n\n<p>If market conditions for growth stocks were not deteriorating at that time, then we probably would have held the remaining half position using a break below the 10-day exponential moving average as a sell signal.  <\/p>\n\n\n\n<p>Nevertheless, we scored a handsome average gain of +28% on just a six-day hold.<\/p>\n\n\n\n<p>The pullback trade setup also enabled us to have a relatively tight stop, which provided us with an excellent reward-to-risk ratio of 5 to 1 at the time of entry. <\/p>\n\n\n\n<p>Of course, not all pullback trade setups work out this well (and so quickly), but the best stocks often do.<\/p>\n\n\n\n<p>The next time you miss an explosive breakout in a hot stock you&#8217;ve been stalking, simply be patient and wait for the low-risk pullback entry that will likely follow.<\/p>\n\n\n\n<p><em><a rel=\"noreferrer noopener\" aria-label=\"Start your Wagner Daily subscription now (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><strong>Start your Wagner Daily subscription now<\/strong><\/a> to receive exact entry, stop, and target prices of the hottest explosive growth stocks in the market&#8211;sent to your inbox daily.<\/em><\/p>\n\n\n\n<p> <\/p>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>Missing an explosive stock breakout can be disappointing, but patient traders can also generate massive gains by simply waiting for a low-risk pullback entry that often follows. Here&#8217;s how we used this winning pullback trading strategy to score a +28% gain in Arcimoto ($FUV) in just a few days. When swing trading stocks, it is [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-8146","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=8146"}],"version-history":[{"count":8,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8146\/revisions"}],"predecessor-version":[{"id":8182,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/8146\/revisions\/8182"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=8146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=8146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=8146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}