It's
all coming together.
Good
morning fellow traders! It's been a while since our last trading idea,
not because we haven't wanted to send one out, but because the market environment
just didn't merit it. With things starting to settle now though, we can
better identify attractive risk/reward scenarios.
Today's is
Alphatec Holdings (ATEC) - a small cap biotech name that's been working
on a bullish rebound since August, but finally solidified the move yesterday.
There are two
key sets of bullish triggers unfolding here. The first set is the
dance with key longer-term moving averages. Though ATEC had been inching
higher ever since August's decimation, until it actually hurdled the 200-day
moving average line (green), any strength was suspect. Well, that's what
happened as of Monday after the stock used the 100-day moving average line
(gray) as a springboard a couple of times. Better still, the bulls followed
through on Tuesday.
The other bullish
trigger here is more straight-forward... Alphatec Holdings got - and
stayed - above resistance at $2.88 (orange).
The big gap
from August that still needs to be filled is just a little gravy.
Though we don't
suggest targeted timeframes with these trades, we will say that the vast
majority of them are intended to be short-term swing trades rather than
long-term holdings. To put it in perspective, we're not worried about the
fundamentals or Alphatec's technology. We're only really watching the chart
and tracking shifts in near-term sentiment. The intent is to lock in decent
profits as soon as they're in hand, and to bail out at the first hint of
trouble.
Anyway, here's
the chart.
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