DUOL - buy the dips
DUOL broke out of a base formation neckline @ 114 strongly on 2nd March this year and then did a classic retest of the neckline on 13 March, affirming that the neckline @ 114 has now become support. It then went on to hit a high of 147 before retracing all the way back down 116.82 (triggering a trailing stop loss @ 130).
A bullish morning star pattern than formed on 5th May and a re-entry was triggered on 6th May. However with earnings reporting on 9th May, one has to decide whether it was worthwhile to take the risk to long here. With the stock already dipping 20% from it's high of 147, the odds of an earnings surprise to the upside could be higher. Nevertheless, risking no more than just a small position (before earnings) seemed prudent.
Now that earnings is out of the way (upside surprise), there is a chance it could break it's last recent high of 147 in the near term. On the bigger picture, the stock is now on an uptrend and there is room to rise in the coming months. However market could continue to be volatile hence it could be less risky to buy any near term dips rather than to chase breakouts.
Learning to manage a position in such volatile conditions is paramount. I would still place trailing stops and am prepared to get stopped out but re-enter at the next bullish trigger, but only if the chart still looks bullish on the bigger picture.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
A bullish morning star pattern than formed on 5th May and a re-entry was triggered on 6th May. However with earnings reporting on 9th May, one has to decide whether it was worthwhile to take the risk to long here. With the stock already dipping 20% from it's high of 147, the odds of an earnings surprise to the upside could be higher. Nevertheless, risking no more than just a small position (before earnings) seemed prudent.
Now that earnings is out of the way (upside surprise), there is a chance it could break it's last recent high of 147 in the near term. On the bigger picture, the stock is now on an uptrend and there is room to rise in the coming months. However market could continue to be volatile hence it could be less risky to buy any near term dips rather than to chase breakouts.
Learning to manage a position in such volatile conditions is paramount. I would still place trailing stops and am prepared to get stopped out but re-enter at the next bullish trigger, but only if the chart still looks bullish on the bigger picture.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.