Yesterday, we looked at a Daily Price Chart of Chewy Inc. noting the stock’s OBV line was sloping up confirming the stock’s bullish price movement.
Today’s chart is for Redfin Corp.(NASDAQ: RDFN).
Redfin Corporation operates as a real estate brokerage company in the United States and Canada. The company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home. It also provides title and settlement services; originates and sells mortgages; and buys and sells homes.
The Daily Price Chart below shows that RDFN has traded in a clear bullish pattern of higher highs and higher lows since early April.
Track the Price Chart from lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way.
These pullbacks present a buying opportunity for us.
Purchasing RDFN after a 3-5% price pullback has provided a good entry point for the stock during this run and has produced a healthy return.
We’ll keep watching RDFN as it tops its previous highs and waiting for price pullbacks.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
The Power of Options
On June 3, we highlighted Bilibili, Inc. (NASDAQ: BILI), noting that BILI’s 1-Month Price had been trading above the 10-Month SMA.
If you happened to have purchased BILI shares on that day, you’d already be up 31.4%.
But… if you had purchased the right option contract, you would be up 181.73% in just three weeks’ time!
That’s the power of options.
Editor, Chart Of The Day