Stock did a major U-turn. Things looking good now. Question now is when to get (at least partially) out and take some profits? Earnings come out Wednesday before market opens so I anticipate the recent rally might be in anticipation of better-than-expected earnings.
I would use resistance $8 levels on a 1 year chart to sell a bit.. so basically sell into probable buying pressure as it tests $8. Then use a trailing stop for the portion you want to hold onto. I usually divide my position into 3rds.. selling 2x 1/3 of position. and trailing stop on last 3rd hopefully catching a nice push b/4 getting stopped out.
The chart is almost perfect if it hadn't closed below the 5 DMA today. But charts lie all the time so it's not really something you can bank on unless you're big enough to paint the tape. Their earnings probably won't disappoint. And very likely it'll be a nice beat (although "nice beat" is something hard to predict for sure or it wouldn't be a credible beat, by default). So if you're sitting on a healthy cushion and if you're willing to gamble away the nice profit you have, if it works out the upside seems to be a lot bigger than if it doesn't the downside. I said "gamble" because it's never easy or even advisable to hold through earnings.
Probably not but I wonder if good earnings are already priced in. I had the same feeling last week with both MMM and TQNT as they both rallied right before earnings came out, then after better than expected results the latter held steady while MMM tanked with disappointing earnings. Seems like there is more to lose than to gain in stocks that do well right before earnings come out.
Wow! I'm glad I issued a stop-loss earlier this week. ZSTN is getting pounded!! Needless to say, I'm now out.