 |
| Gator's Chart of the Day: BBT |
The stock is now above the 200 day and peeking into the overhead gap. I think it will quickly fill that and move on up to test the September high of 34.37. That's 13%+ to the upside from Thursday's close and I think the risk of a move below 30 is nil. That offers a 4:1 reward to risk ratio and that's attractive. This can also be a good longer term position as the stock pays an .80 dividend for a 2.6% yield.
The Trade
I would buy under 31.30 and quickly fill the position with one more buy if it clears 31.50 and holds for 20+ minutes. With the position full in a very tight range the stops will also be tight to avoid a significant loss. I would put a stop on half just below Thursday's low (30.31) and the rest just under the 20 day sma (currently 29.84.) I would raise the stops as the stock moves up and I would be out if the stock falls below the middle Bollinger band by more than a few pennies since it has not done that since it turned up in early December.