I Bought And Added To NMRK Yesterday

I like the base $NMRK has formed here, and after showing solid support at the 50 day, I used the high of the day on 12/4 as my pivot buy point. On 12/5 it opened at the previous days close and then methodically moved above my buy in price around noon. What I really like about buying at this price was that it coincided with a move above the 20 day. A close above it would be a confirming strength signal.

While that’s great it also gave me a bit of pause because it wouldn’t be abnormal for a stock to get above the 20 and then retreat back below it. With that in mind I opened a 1/5th size position with the intention of increasing my position by half if a close above the 20 day looked likely.

Fortunately it closed strong and I added to my position getting me to 1/3rd of full size. I was hoping to add a second time the next day on a follow through, but it gapped up on me. Maybe we will get some further tightening on another pullback and I’ll be able to increase position size on another turn up from the 20.

I’ve set my stop loss a few pennies below the low of the day on December 4th for an average risk of 3.19%. Controlling risk here pretty tightly but I do like that my stop is below the 20 and the 50 day moving average, so in theory there should be some support there.

Quick Update

I got stopped out of this position on Dec 10th at my stop price. Good thing too because there ended up being no support at the 50 day moving average and it had a bad close today, Dec 17th.

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