MDRX is setting up to come down to support at 22.25ish. Looking at the chart, it looks like MDRX is consolidating a quick move downwards and very well could resume its downward trend very soon. The next logical stopping place for the stock would be the support level which has held it several times. If the stock gets to this level it is most definately a buy.
Buying at support gives you a very good risk reward ratio. By looking at the price action over the last 6 months you could assume that if the stock rebounds, it will likely be able to get up to at least 25 on a bounce. So, that gives you around 3 dollars upside. As for downside, you'll know you're wrong quickly. Below 22 doesn't work for this stock. Support will have broken and you need to stop out. Therefore, 3 up, .25 cent down. You should be taking that type set up all day long.
CM
No comments:
Post a Comment