12% gain on an 8-day hold – Nuance Communications ($NUAN)

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Here is a review of a recent long entry into Nuance Communications ($NUAN), which we recently sold for a 12% gain with an 8-day holding period.

In the pre-market on January 5, subscribers of the MTG Stalk Sheet were alerted to a potential breakout setup in NUAN.  Below are two charts that are snapshots of the price pattern at that time. The first chart below shows the breakout action on the longer-term monthly time frame, while the bottom chart shows the tight consolidation pattern on the daily chart, which was holding above the 50-day moving average. We have also labeled our buy entry point from that day, along with our initial stop price:

As anticipated, the NUAN buy entry triggered on January 5th. Below is the price action subsequent to our entry:

As the chart above illustrates, we locked in a 12% gain (on an eight day hold) in NUAN by selling into strength of the slight gap up on January 17th.


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Deron Wagner

Deron Wagner is a professional trader, author of several ETF trading books, and the Founder of Morpheus Trading Group. Since 2002, he has been sharing his proven swing trading strategy with thousands of traders around the world. He has appeared on CNBC, ABC, and Yahoo! Finance Vision television networks, and is a frequent guest speaker at various global investing conferences.

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