KAL opened strong once again today, gapping up nicely but probably getting close to exhausting the upside on this run. The stock traded as high as $.160, but did not eclipse the old high of $1.62- it has since fallen back and is now trading solidly in the $1.50 range.
You can see from this 11:30 AM chart that the stock doesn’t quite make it above the previous October high. A valiant effort.
Unless there is some additional blockbuster pending news, I suspect the stock is now ready to cool off temporarily. If you own from about 10 days ago at the $1.10 level or less, you might consider taking a partial profit. If you recently picked it up at or about $1.30- I would say it isn’t worth the trade to sell, but that’s just my view. If you bought it in the last few days north of $1.30 and you followed my advice, you should be ready to add to the position on a pullback.
Here’s the real question- will you accumulate this stock when it is quiet and no one wants it?, or will you wait until the stock is going crazy like it did this past week and jump on the speeding train? One thing you can be sure of- when the stock hits the right level again based on Fibonacci retracements, I will post a BLOG with a buy rec. Stand by.
In the meantime, any questions or comments are welcome.
I have no problem with taking some profits and re-entering when the time is right. The only concren would be if the Antiprimod PIII started sometime this month. Could gap to levels above where we are now. Any thoughts? Mike
Editor: The observation that this stock is going to trade off regulatory events is correct. It is possible it could gap up off this event. Trial results will be better catalysts in the future. It’s possible there is another leg up before a correction, but common sense suggest otherwise.
I like what I read about this stock, so what’s your opinion on a good price to place a order.
Editor: Once the volume quiets down, I will publish either a BLOG or full edition with 38.2% and 61.8% retracement levels. As I stated in the last BLOG, if I were looking to get into this stock now, I would invest 25% of the allocated capital immediately just so I had a position, and save the remainder for a well deserved correction if and when it comes. If it doesn’t pull back, at least you have a start.
I got in at 1.48, I know it was late but couldn’t help it. should I try and accumulate more on a pullback or is it going to go higher?
Editor: you never know for sure, but I would wait for a pullback before piling in. The stock made a 50% move in 10 days- it’s exciting and everyone thinks it’s just going to go up forever. It’s just my opinion, but I would wait for a more favorable entry level. I will publish some thoughts on that soon.
Why the big move on tues.? trust me I am not complaining but just curious. I feel it will pull back from tues. ya think?
Editor: It will probably pull back a little, but hold most of the gains. I believe the sellers in this one are pretty much gone due to all the volume in the 4th qtr. I heard a German firm put out a buy recommendation on the stock, but I haven’t confirmed who or what they said. This could explain the volume and price surge.