Wednesday, April 18, 2007

Today's Trade: ZUMZ

I bought 500 shares of ZUMZ at $38.83. The stock has pulled back to the early March breakout point on low volume, has a strong OBV reading and is oversold. When trading this "breakout-pullback" setup, I would normally wait until the stock moved out of oversold territory. Due to the fact that there is such as clearly defined stop in place, I went ahead with the trade. My stop is at $37, just under the 50 day moving average and previous price congestion. My intitial target is the previous high of $42, giving me a 1.75 to 1 reward-to-risk.

1 comment:

Sureshbabu said...

ZUMZ is a good pick, it's doing good today.