INTA Formed A Pocket Pivot That Offered A Low Risk Entry

January 21, 2025 - Updated: February 1, 2025

Going into a fresh trading week I had three stocks at the top of my watchlist, and one of them was INTA. It had everything going for it in a stock that I’d like to buy.

90+ relative strength
strong uptrend
shallow pullback during market correction
long base
high volume support at moving averages
low risk entry

You really can’t ask for much more, other than favorable market conditions, and we have that right now too.

A hollow candlestick chart for INTA, showing when I bought it and my risk on the trade. — Click the image to view full size

While increasing in price more than 100% in four months doesn’t qualify this stock to be a high tight flag, it’s still an incredibly strong stock with a recent history of good earnings reactions.

BTW - I hit a home run on the first HTF I ever bought and swung and missed on the second.

It did correct more than SPX during the market correction, but SPX didn’t double since the summer either, so 15% is more than an acceptable pullback. It bounced off the 50sma with huge volume and then followed through the next day with even more volume before forming a buyable pivot.

The 7.17% risk on the entry is a bit more than I would like, but it’s set up so nicely now that I decided to press the buy button and reduce my position size to half, keeping the risk on total equity below 1%. If my timing is good I’ll be able to move the stop up quickly.

Update - I Moved My Stop Up Today

Today is January 28th and INTA made a powerful 7.22% move to the upside after showing good support at the 21ema yesterday during the Deep Seek saga.

I’m going to use this as an opportunity to move my stop up to just below yesterdays low. Earnings are coming up soon so I’m going to keep this on a tight leash. I may even consider cutting it at break even if it pulls back to my buy point before earnings.

Position Closed For 5% Profit

Unfortunately, we didn’t get any follow through after that 7.22% move, so I started closing the position as we got closer to earnings. The volatility instead of follow through was concerning enough for me to take the profit and run.

A hollow candlestick chart for INTA, showing when I bought it and when I sold the position. — Click the image to view full size

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