Venture was mentioned for long on 6 June(Thur) at ard $15.25(as shown below) and price rebounded nicely in the next a few days. On Wed, it reached $16.68, a +9.3% potential rebound for a high price bluechip stock, not in a year, not in a month but less than a week. Not just venture, but also called for AEM(+15% in 3 days), hi-p (+10.3% the next day) and some other rocket stocks in the past one week, attributing to Game Theory trading.
Below is the live trading signal I made BEFORE the price made the nice movement. This time price did not move after immediately like AEM and Hi-p, But price start to go up the next day.
Now after the nice move of 9.3%, how should we handle venture position in hand? Can consider buy and expect it to go up some more? Should we consider take profit?
Let’s look at recent financial report first. The financial report on 25 April was not bad, next profit up 8.5%. however, big boys started selling severely, price dropped from 19.28 to 14.64 without meaningful rebound. Maybe because mkt was expecting better results and the report on 25 April did not meet the expectation. Or maybe the Huawei issue affected investors expectation on tech stocks, we can not tell exactly.
But generally I will say venture is in a long term downtrend according to price action. Therefore I won’t plan to hold it for long term and become Warrant Buffett.
On the contrary, after a quick impulsive move, Venture is likely to have some consolidation or even sell down soon. For the time being, the potential is very limited with the resistance at ard 16.68-16.70.
I will NOT to consider open new venture long position after the quick move recently because risk/reward ratio is bad. Those who still have venture position in hand, may consider selling it gradually during the rebound, pocket in the profit and avoid the possible consolidation of even pull back, it may even resume of downtrend and make new low given time because it is so far still a downtrend stock, uptrend has not established yet.
Later after some consolidation and venture becomes not overbought, we can consider trade it again if price breakout 16.68-16.70 resistance then.
Let’s look at recent financial report first. The financial report on 25 April was not bad, next profit up 8.5%. however, big boys started selling severely, price dropped from 19.28 to 14.64 without meaningful rebound. Maybe because mkt was expecting better results and the report on 25 April did not meet the expectation. Or maybe the Huawei issue affected investors expectation on tech stocks, we can not tell exactly.
But generally I will say venture is in a long term downtrend according to price action. Therefore I won’t plan to hold it for long term and become Warrant Buffett.
On the contrary, after a quick impulsive move, Venture is likely to have some consolidation or even sell down soon. For the time being, the potential is very limited with the resistance at ard 16.68-16.70.
I will NOT to consider open new venture long position after the quick move recently because risk/reward ratio is bad. Those who still have venture position in hand, may consider selling it gradually during the rebound, pocket in the profit and avoid the possible consolidation of even pull back, it may even resume of downtrend and make new low given time because it is so far still a downtrend stock, uptrend has not established yet.
Later after some consolidation and venture becomes not overbought, we can consider trade it again if price breakout 16.68-16.70 resistance then.
Some investors missed Venture nice move, some investors may feel challenging in stock pick and price monitoring to catch nice great trading opportunities, like Venture and other stocks (click here to read other trading calls made). If you encounter similar challenge in the market......