Lets Celebrate together for My Recent Wnning of $10,819 or 20% gained
My Recent Winning of MGM bought at an average price of $10.67 and sold at an average price of $12.80 during the recent new high. My realized gain to be be exact amounted to $10,819 for a trading period of not more than 2 months.
The reason why I am selling the MGM is I believe that MGM is overbought and it is overdue for a correction. From a low of $9, MGM has been climbing steadily all the way up to the current level at $12.80. It is a whooping gain of more than 40% if you would have bought at the $9 level.
Moreover, the stochastic indicator, an important indicator, already shown that MGM stock is overbought and getting bearish. Eventhought the MACD indicator is still showing positive sign, however, based on my many years of experience, I believe that it is just a matter of time before the blue line will cross over the red line (as per my own drawing above) and push MGM into the bearish zone for a technical correction.
MGM is currently going through a strong and steady uptrend, however, after a run up of more than 40% from the recent low, technical correction is inevitable. This stock is due for a correction and should be retraced to the $10.90 at least before any convincingly uptrend to proceed futher. Eventhough, there is chances I might be wrong for selling too early, but it is not worth taking this risk as I am currently not in a risk tolerance position due to my personal reason.
It should also happened because it is time for the speculators to cover back their long position in this stock and to restart afresh again for the next upward move.
Well, when it happened, I will be there to watch it like an eagle hawk eye and to strike on MGM again when the price is right. Another 2 stocks that I am currently looking at after a huge sell down is Electronic Art and Supervalu Inc.
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