Additional Trading Ideas:
In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these may need to see a break past key support or resistance:
BGFV, ADSK, MYL, LINTA, CSIQ, CTCT, MS
NEW BULLISH Plays
Five Below, Inc. - FIVE - close: 44.54 change: -0.64
Stop Loss: 49.65
Current Gain/Loss: unopened
Entry on November -- at $--.--
Listed on November 11, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 694 thousand
New Positions: Yes, see below
Why We Like It:
FIVE is a specialty retailer. The business is similar to the dollar stores but in FIVE's location all the items are priced at $5.00 or below.
The company's last earnings report back in September beat estimates and the stock gapped to new highs. Since then the company is issued a secondary of seven million shares. The market has digested the new stock and FIVE has pushed its way to new highs again.
There are plenty of investors who believe FIVE's valuation is too rich. That has led to a rise in short interest. The most recent data listed short interest at 19% of the 46.6 million share float. If FIVE continues to rally it could see a lot more short covering. The recent breakout past round-number resistance at $50.00 should have the bears in a panic.
Traders bought the dip near $50.00, which is now new support. Today's high was $52.12. I am suggesting a trigger to launch positions at $52.25. If triggered our target is $58.50 over the next several weeks.
FYI: The Point & Figure chart for FIVE is bullish with a $68.00 target.
Trigger @ 52.25
Suggested Position: buy FIVE stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the DEC $55 call (FIVE1322L55) current ask $2.10