This week on Talking Markets With Marc And Andrew, we chose Hibbett Sports, Inc. (ticker HIBB) for our Trade Of The Week. This is a short term swing trade idea that aims to capitalize on breakout momentum in a stock that is relatively strong to the broader market.
Strong Chart, Recovering Market.
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Hibbet Sports, Inc. (ticker: HIBB) has established a small magnitude higher low formation off of the 32 area which is a bullish sign. This is especially so in light of the recent broader stock market retrace which is likely to make a recovery attempt going into the close of the week.
IF bullish momentum follows through, price is likely to test the low 40s. The reward/risk is rather low on this trade idea because we are opting for more conservative targets. Why? If the broader stock market (S&P) does not make a new high on this next leg, it will further confirm our anticipation of a broader consolidation which means weak or less favorable momentum environment over the short term.
This is not to be confused with a “bear market”. A broad market consolidation can easily develop into a trend continuation pattern which will offer more buying opportunities for both short term and long term strategies.
Here is the trade idea:
Buy Stop: 35.15
Stop Loss: 32.15
Target 1: 36.85
Target 2: 38.15
Target 3: 40.25
This is a short term momentum play looking to capitalize on a break out of a stock that is relatively strong compared to the broader market.
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