JS-Masterclass #9: Perfect Buy Points – The Power Play
In the recent tutorials we have some patterns leading to a Perfect Buy Point (Volatility Contraction Patterns, IPO’s – The Primary base). In this tutorial we will cover the so called Power-Play.
Characteristics of a Power-Play:
1. An explosive price move on huge volume; the stock shoots up 100% or more in less than 8 weeks.
2. The rapid price run-up could be induced by a major news development such as an FDA drug approval, litigation resolution, a new product or service announcement or even an earnings report, or on no news at all.
3. The stock price then moves sideways in a relatively tight range not correcting more than 20% over a period of 3- 6 weeks (some emerge after only 10 or 12 days).