In this week’s Swing Trade Stock of the Week video, we highlight one of biotech’s most explosive stocks, CEMP. CEMP has been on a tear since we first mentioned it in the Report in early December.
The keys to a great momentum stock are volume and price action. Volume has been pouring into the stock since it’s early October breakout. Each new breakout has been followed by strong volume and low volume pullbacks. These pullbacks show strong price action, with each breakout forming a trading range or box followed by a new breakout. The box trading method was popularized by trading pioneer Nicholas Darvis.
A new box range has formed between $22 and $26. Watch this range closely. A pullback to the bottom of the box setups up a “buy support” entry, while a breakout of $26 sets up a breakout entry into a new box.
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