by Shane Ormond
On Feb 20, 2020
Shares of Groupon and Blue Apron tanked yesterday after their quarterly reports reignited skepticism about the companies’ “unconventional” business models. (And by “unconventional” I mean “doesn’t work.”)
Blue apron, groupon, e-trade, morgan Stanley
Blue apron, groupon
Yesterday, we looked at a Daily Price Chart of Merck & Co., Inc. and noted that the stock had been making a series of higher highs and higher lows.
Today’s Chart of the Day is a Daily Price Chart for ANSYS, Inc. (NYSE: ANSS).
ANSYS, Inc. develops and markets engineering simulation software and services worldwide.
Now, below is a Daily Price Chart for ANSYS, Inc.
Back in February 2019, the ANSS 1-Month moving-average crossed above the 10-Month simple moving-average (SMA) indicating ANSS is on a PowerTrend ‘buy’ signal (circled).
And since then… prices have only continued to climb, never retracing below the 10-Month SMA.
Now, as you can see, the 1-Month moving-average is still above the 10-Month SMA. That means the bullish trend is still in play!
As long as the 1-Month Price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
Maximizing Our Profit Potential
On August 5th 2019, the ANSS stock price had a significant pullback after the stock was overbought for most of the month of July.
If you had purchased ANSS shares on this date, you would currently be up 34.98% on the stock.
Not a bad profit for a five-month-hold of a software technology company.
But…if you had purchased the right option contract on August 5th, you would currently be up 303.91%.
That’s after only one trade!
That is the power of options – and exactly the kind of opportunities we seek and find in our premium trading service, PowerTrend Options. Up to twice a week, subscribers get trades in their inbox just like this one – it’s how we’ve curated a 100% successful open portfolio.
We’ll be keeping our eye on this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to come back down presenting another prime buying opportunity.
Editor, Chart Of The Day