If you follow this newsletter daily, you’ll see that I provide not only trading ideas, but also the education that will enable you to find additional great trades on your own.
Today’s trade idea is an example of both as I’m following up on a trade setup from about two weeks ago.
I alerted you to watch this $5 stock for a big breakout.
The breakout has started, and now you have a second chance.
New Age Beverage (NBEV) sells beverages, which they describe as a “better-for-you drink that actually tastes good.”
Healthy living is a hot trend, and so the cannabis and CBD industry. NBEV is riding both of these trends.
Plus, it’s not affected by the China trade concerns.
Two weeks ago, I suggested you wait for a breakout over 5.40 to enter. That happened earlier this week.
Yesterday, I explained the trading tactic of buying strong stocks that hold up after very weak days in the general market. As you can see by the chart below, that’s what has happened in NBEV.
Now you have a second chance at the breakout, and you can even set an even tighter stop if you’d like.
The trade now is to buy a breakout over yesterday’s high $5.55 and use a stop under yesterday’s low, $5.30.
That’s roughly $0.30 of risk, and a very possible move back to $7 would be a $1.50 which is 5x your risk!
Plus, when we get that type of move, it could represent the beginning of an even bigger move.
If you’d like a more conservative stop, under $5 would be a good choice.
Rick Nartarian, Chief Investment Officer
The American Investor Daily