How To Buy Top Breakout Stocks On A Pullback ($YELP)

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On August 21, 2013, we bought Yelp, Inc. ($YELP) in The Wagner Daily newsletter, as the stock pulled back to near-term support after a massive breakout (click here to see our original analysis of $YELP on day of buy entry).

Since then, shares of $YELP have zoomed to an unrealized share price gain of 27% (from our entry point through the close of September 11), and we continue to hold the stock in anticipation of further gains.

In the educational 5-minute swing trading strategy video below, we walk you step-by-step through the objective technical analysis that prompted us to buy $YELP, currently one of the strongest stocks in the NASDAQ.

Specifically, you will learn a low-risk way to buy a stock that forms a bullish reversal pattern after pulling back to near-term support of its 20-day exponential moving average.

For best viewing quality, play the video below in full-screen HD mode. After playback begins, just click the icon on bottom right side of the video player window:


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Question? Comment? We're All Ears.

  1. Nice if you could put the video in a transcript just like July 20, “How to buy strong stocks on a pull back”..

    thanks.

    • Thanks for the suggestion.

      In the article you are referring to (http://www.morpheustrading.com/blog/how-buy-strong-stocks-etfs-pullback/), it is not actually a transcript of a video. Rather, that post was originally a text-based aricle with some annotated charts that we added. There was never actually a video made for that article.

      On the blog, we try to mix it up between written stock articles and video analysis because it seems our readers have a preference for one or the other. So, we try to keep everyone happy. However, your preference for written analysis is noted.

      As for transcribing the video post-production, that is rather time intensive and involves the creation of new charts to post. Nevertheless, we will try to accommodate your request if our resources allow.

      We appreciate your feedback and your interest in our blog.

      Good trading to you,

      Deron

    • Our original stop on day of our August 21 entry was $45.95. Based on an entry price of $50.64, this represented a stop price that was 9.3% below the entry.

      Most of our stops are in the 7-8% range below the entry price. However, the more important element is that we must be expecting a MINIMUM gain that is equal to at least 2x (preferably 3x) the amount of the stop.

      In this case, it means we were looking for a gain of AT LEAST 20% in $YELP, just in order to take the trade with the 9.2% stop.

      So far, with $YELP up approximately 25% (unrealized), we’re now more than 2 to 1 reward-risk on the trade (and we have raised the stop substantially since then too).