How We Bought A Pullback In LifeLock ($LOCK) For A 15% Gain…So Far
On August 13, we bought shares of LifeLock ($LOCK) with a $12.37 entry price. Since then, $LOCK has climbed to an unrealized price gain of approximately 15% since our buy entry (over a 4-week holding period).
In today’s stock trading strategy video, we show you the exact technical signals that alerted us to buy $LOCK on a pullback, just a few days after the stock broke out from a bullish cup and handle chart pattern.
Press the “play” button to view the 3-minute video below. For best viewing quality, click the icon on bottom right corner of video player window to view in full-screen HD mode:
As explained in the video, the key point in buying the pullback of a stock that has already broken out is to look for a retracement to the 10-day moving average, then buy the first move above that that day’s high.
Sometimes, especially when the broad market is taking a rest, a stock will pull back further than the 10-day moving average (to the 20-day moving average), but the swing trade setup is still valid if the stock quickly snaps back.
If you wish to learn more about our proven system for buying pullbacks of breakout stocks, check out this September 10 video on our blog¬†that detailed our recent pullback swing trade entry into $YELP (which is still open and presently showing a gain of ¬†30.2% since our entry).
To ensure you receive the exact entry, stop, and target prices for our next big pullback trade entry¬ before¬†the stock surges higher,¬ sign up now for your risk-free trial subscription to The Wagner Daily swing trader newsletter.
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