I’m hoping to do a few of these over the next few weeks to see if there is any interest.  Many of the charts featured will be of bigger risk, much higher reward so don’t even consider betting the farm 🙂  I like to dabble in these kinds of swing trades with 2-5% of my portfolio, looking for a quick gain of 20 – 100% over the course of a few days to a couple weeks.

Todays’ stock is Live Deal Inc (LIVE), a company that focuses on marketing services and products for small to medium businesses in local markets.  The stock soared a couple days ago and has been digesting those gains quietly.  Now, you just want to wait for a breakout from this consolidation with good volume which would signal a nice entry point.  The first chart is the daily chart showing Monday’s high volume surge breakout.  The 2nd chart shows the 5 min chart and orderly consolidation as traders take their quick profit.  Often times these stock will carve out this exact same move – big surge over one or two days followed by a digestion of those gains over a day or two, followed by a more sustained move in the direction of the breakout which in this case is up.

IMPORTANT: Be patient and wait for a breakout of this consolidation.  As I write this I see the stock has dipped below $4 and taking out intraday support so an intraday breakout is no longer imminent.  It may not happen until later today or tomorrow.. OR even at all for that matter.  That’s why it’s important to wait for buy demand to return.

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