Recent weakness across the market is beginning to open the door to great buying opportunities in the wide universe of stocks. Covidien Public ($COV) has pulled back alongside the market during the last week of trading, but remains within a strong bull trend – which makes this a perfect time to buy!
Buy the Dip
The daily chart of $COV shows price sold off to $50 after topping out at $53.75 earlier in the month. While this is the largest drop this stock has seen since November, it remains within a highly stuctured bullish trend.
As you know, I’m found of buying into weakness during strong bull markets. Buy the dip, sell the rip!
Bullish GPZ
The daily chart also shows that price is beginning to find buyers in the $50 to $51 zone, which represents a bullish Golden Pivot Zone (GPZ). Those of you that have read my book Secrets of a Pivot Boss know that this is a very powerful form of pivot-based confluence. Essentially, buying in this zone of support during bullish trends makes a lot of sense.
If price continues to hold above the bottom of the pivot range at $50, or even above $49.80, we could see a very nice surge of strength that lifts price to new highs. Keep an eye on $54.50 as a target, as this level represents the monthly H5 Camarilla pivot level.
Watch $51.30 for an opportunity to enter this trade.
Stereotyping Market Days
As a quick reminder, I’ll be teaching a new course called Stereotyping Market Days this Thursday. Click THIS LINK to learn more about the course and to watch a short video!
Let’s see how this trade turns out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
glad to see you are building a strong base.