Stock Chart: Entry Point After Breakout: BILI

December 4, 2020, 6:28 pm EST

Entry Point After Breakout: BILI

Ideal entry point for a target stock  is hard to find because it needs to meet the following criteria:

  1. Minimal pullback for the short term
  2. Close to the earlier pivot point for the coming trend or avoid late stage in a trendy move
  3. Catch the timing of strong momentum so it will move above the entry point

Bilibili, Inc. (BILI) is a holding company, which represents the iconic brand of online entertainment for young generations in China. This is an example where we want to initiate or add a position to a portfolio after its breakout. 

Here are technical perspectives for BILI regarding its entry point: 

  • BILI made a fast and strong move from March to July, 20 to 50, or 150% gains within 3-4 months. 
  • Then, BILI made sideway consolidation from July to November about 5 month duration
  • Remember, a strong stock can move up 4-5 bases until its final top so patient is a key to wait its next breakout
  • 11/19 BILI made a strong breakout again with +22% gains in a single day so notice momentum kicks in again
  • BILI does not pullback much for the next 8 sessions so the timing should be ready for its uptrend action
  • 12/03 is the triggering day because 60 appeared again that is the lowest possible entry point meeting three criteria we mentioned earlier

Let’s watch if BILI can become a winning trade for the next few weeks or months 

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