Today's Trade: NCTY

I bought 500 shares of NCTY at $36.15. This stock was originally on my "breakout" list, with $38 as the potential entry point. However, upon further review, I decided that it would make an even better pullback entry. Note that the stock has been a buy whenever it pulls back to the middle bollinger band (20 day MA). I also like the fact that RSI has been strong and a pullback buy, and oversold stochastic crossovers have been successful as entry points. These are all signs of a strong, trending stock. While the stock has not completely pulled back the the 20 day moving average ($35.51), I decided to enter now because the $36 level was the most recent breakout point and we've already had the oversold stochastic crossover. My stop will be placed just under the 20 day MA, probably around $35.25.


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