Analysis:
NOVL gapped up strongly in early November, and then formed a good trend which endured well into the widespread downturn that began mid January. However, the stock did begin to weaken in early February, and eventually fell nearly 35% from its highs. Since then, the stock has formed a double bottom, reaching first lows of 9.31, then a high of 10.54, followed again by a low of 9.32 this Mondayâs session. On Tuesday and Wednesday the stock rallied strongly again. Today, the stock closed at 10.63, breaking above the double bottomâs intermediate high on roughly twice the stockâs average volume; simultaneously with this bullish development, the stock also broke above itâs upper Bollinger band.
Key Levels:
Entry: Market open.
Target: We anticipate that even a minor rally on the indices would push the stock near to resistance at 11.66. Our target is 11.49.
Stop Loss: Just below the highest closing price of the double bottom pattern. Specifically, we will place it at 10.23.
NOVL gapped up strongly in early November, and then formed a good trend which endured well into the widespread downturn that began mid January. However, the stock did begin to weaken in early February, and eventually fell nearly 35% from its highs. Since then, the stock has formed a double bottom, reaching first lows of 9.31, then a high of 10.54, followed again by a low of 9.32 this Mondayâs session. On Tuesday and Wednesday the stock rallied strongly again. Today, the stock closed at 10.63, breaking above the double bottomâs intermediate high on roughly twice the stockâs average volume; simultaneously with this bullish development, the stock also broke above itâs upper Bollinger band.
Key Levels:
Entry: Market open.
Target: We anticipate that even a minor rally on the indices would push the stock near to resistance at 11.66. Our target is 11.49.
Stop Loss: Just below the highest closing price of the double bottom pattern. Specifically, we will place it at 10.23.
