About a month ago I noticed that Tandem, (TNDM) a medical device manufacturer had broken out of a downtrend. You can check out how to spot that in the article here. It showed some nice upside potential and moved higher as expected.
A couple weeks later, as it continued it’s move, it created an easy to recognize target at 105. We walked through that in this article. (I also mentioned some other similar stocks to watch in that article that have also done well.) Sure enough, TNDM it kept moving up and is ready to hit that target.
The confirmation of this momentum reversal is a very big deal. Lets look at why. Check out the updated chart below:
The lowest black line is the first point of resistance that then became support. This was a key point as it was also where the price crossed the 10, 50, and 200 day moving average. With that new support level, it has climbed up to the next point of past resistance. right around 105. The momentum is strong and it is likely this rally will continue.
This sets up the really good news. The next point of resistance was created back in Nov and is at about 120. The run up to that price is a good trade to be in on.
To put even more power into this trade, a call option for the Aug 20 with a strike of 110 is an easy way to potentially turn a 20% gain into what could be a doubler. It is trading at $3.25 this morning and could boost the return from this trade.
These trades are a great example of why I am a big fan of Joe Duffy’s Little Black Book of Momentum Setups. It makes it easy to spot these trades and turn them into repeatable profits. Be sure to grab a copy here.
Keep learning and trade wisely,
Market Wealth Daily