If you would have invested in NOG on May 25, 2010 when this stock was trading at $11.72, you would have made about 22 dollars per share, in less than a year. On March 7, 2011 it touched $33.98 before it started a downtrend, and is currently trading at $25.92. If you missed the boat back then, I think it is time again to make some money trading this stock.
Take a look at its daily candlestick chart below, you will notice that it touched Support line 1 of $23.46 three times in last four months, first on January 25, 2011, second on March 25, 2011 and recently on April 6, 2011. Notice how it bounced off of this support line on April 7, 2011 and followed the upward trend next day. If it continues this trend and crosses the resistance of $26.63, I think we should grab it and ride this trend as far as it continues upward.
My plan is to buy 350 shares of NOG at $26.83 about 20 cents above it resistance of $26.63. Once I complete this purchase I will setup a sell stop to sell all 350 shares at $26.53.
There are actually three possibilities that I see:
First this could never hit my buy order and continue the downtrend, which is fine with me.
Second it could hit my buy order and then start a downtrend, in which case I will be loosing 30 cents a share, a total of 105 dollars.
Third possibility is what I am expecting could happen, which is this stock could hit my buy order and continue upward to hit the target of $33.33, in which case I will be making $6.5 per share, a total of $2,275.00. If it does hit my buy order, I will be watching it closely to see any change in trend, and could exit before it hits the target.
Update April 23, 2011: On April 15, 2011 this stock crossed support 1 and went as low as $21.78 before trending up. Currently it is trading at $23.95 just above this support line. I moved my buy stop to buy 350 shares of NOG at $24.05 and will be setting up a sell stop at $21.71 after the purchase. Please take a look at its current daily candlestick chart.
Update April 25, 2011: Bot 350 shares of NOG today at $24.10, below is an updated daily candlestick chart of NOG for your reference. Currently I have a sell stop to sell 350 shares setup at $21.71
Hello Aleem! Looks like NOG is getting close to your buy price. Are you still going to purchase stock?? Starting to look juicy. Take care Akeem
Yes Ryan, I always setup a buy order so if this stock reaches my buy point it is automatically purchased for me.
Good setup – thanks. Please only change dates in your description: this May 05, May 07 instead of March is confusing a little
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Hi Mark, thank you for pointing the wrong months, it was my bad.