{"id":6902,"date":"2020-07-10T13:24:48","date_gmt":"2020-07-10T17:24:48","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6902"},"modified":"2022-04-06T15:04:56","modified_gmt":"2022-04-06T19:04:56","slug":"lvgo-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/lvgo-breakout\/","title":{"rendered":"How We Gained +70% in Livongo&#8211;Despite Missing the First Breakout [$LVGO]"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/i2.wp.com\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO.jpg?fit=640%2C427&amp;ssl=1\" alt=\"\" class=\"wp-image-6934\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO-110x73.jpg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO-300x200.jpg 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO-768x512.jpg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO-1024x683.jpg 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption>Source: Livongo<\/figcaption><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/lvgo-breakout\/#Its_easy_to_feel_youve_%E2%80%9Cmissed_out%E2%80%9D_when_a_hot_stock_breaks_out_without_you_in_it_but_the_next_low-risk_buying_opportunity_is_often_just_around_the_corner_Heres_how_we_entered_LVGO_and_rode_it_to_a_70_gain%E2%80%94despite_missing_the_initial_breakout\" >It&#8217;s easy to feel you&#8217;ve &#8220;missed out&#8221; when a hot stock breaks out without you in it, but the next low-risk buying opportunity is often just around the corner. Here&#8217;s how we entered $LVGO and rode it to a +70% gain\u2014despite missing the initial breakout.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/lvgo-breakout\/#The_first_big_rally_after_a_breakout_from_a_lengthy_consolidation_is_often_the_beginning_of_a_new_trend%E2%80%94NOT_the_end_of_one\" >The first big rally after a breakout (from a lengthy consolidation) is often the beginning of a new trend\u2014NOT the end of one.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/lvgo-breakout\/#Healthy_price_consolidation_checklist\" >Healthy price consolidation checklist<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Its_easy_to_feel_youve_%E2%80%9Cmissed_out%E2%80%9D_when_a_hot_stock_breaks_out_without_you_in_it_but_the_next_low-risk_buying_opportunity_is_often_just_around_the_corner_Heres_how_we_entered_LVGO_and_rode_it_to_a_70_gain%E2%80%94despite_missing_the_initial_breakout\"><\/span>It&#8217;s easy to feel you&#8217;ve &#8220;missed out&#8221; when a hot stock breaks out without you in it, but the next low-risk buying opportunity is often just around the corner. Here&#8217;s how we entered $LVGO and rode it to a +70% gain\u2014despite missing the initial breakout.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the broad market formed a bottom in mid-March, Livongo Health ($LVGO) was one of the first stocks to show market-leading strength in the new market uptrend.<\/p>\n\n\n\n<p>$LVGO gapped above the high of its base on April 7\u2014just one day after our <a rel=\"noreferrer noopener\" aria-label=\"market timing model (opens in a new tab)\" href=\"https:\/\/new.morpheustrading.com\/blog\/market-timing-system\/\" target=\"_blank\">market timing model<\/a> issued a new &#8220;Buy&#8221; signal in the NASDAQ.  <\/p>\n\n\n\n<p>From that initial April 8 gap, $LVGO rocketed higher and <em>doubled<\/em> in just 25 trading sessions! <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"783\" height=\"756\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO1.png\" alt=\"\" class=\"wp-image-6904\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO1-110x106.png 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO1-300x290.png 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO1-768x742.png 768w\" sizes=\"auto, (max-width: 783px) 100vw, 783px\" \/><\/figure>\n\n\n\n<p>We mentioned the potential buy entry to chat room members when $LVGO broke out on April 8, but missed the gap up for an &#8220;official&#8221; <em>Wagner Daily<\/em> swing trade buy entry.<\/p>\n\n\n\n<p>Although it&#8217;s never fun to miss an explosive move in a must-own stock, we took comfort in this important fact:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_first_big_rally_after_a_breakout_from_a_lengthy_consolidation_is_often_the_beginning_of_a_new_trend%E2%80%94NOT_the_end_of_one\"><\/span>The first big rally after a breakout (from a lengthy consolidation) is often the <em>beginning of a new trend\u2014NOT the end of one.<\/em><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>As such, we kept a watchful eye on $LVGO for a pullback that would lead to a low-risk buy buy entry in our <a rel=\"noreferrer noopener\" aria-label=\"model portfolio (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><em>Wagner Daily <\/em>model portfolio<\/a>.<\/p>\n\n\n\n<p>After chopping around in a tight range for a month, a low-risk buy point emerged on June 16 (false breakout followed by a few days of tight-ranged price action).<\/p>\n\n\n\n<p>Tight price action just above the 20-day exponential moving average presented an early entry over the two-day high, rather than waiting for another breakout to a new high. <\/p>\n\n\n\n<p>Given that so many traders were looking to enter $LVGO, we anticipated the trade would be easier to properly manage by buying ahead of the next obvious breakout level.<\/p>\n\n\n\n<p>The chart below shows the 4-week price consolidation that formed after the initial breakout, as well as our buy trigger:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"783\" height=\"756\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO2.png\" alt=\"\" class=\"wp-image-6906\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO2-110x106.png 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO2-300x290.png 300w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO2-768x742.png 768w\" sizes=\"auto, (max-width: 783px) 100vw, 783px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Healthy_price_consolidation_checklist\"><\/span>Healthy price consolidation checklist<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since the stock had just doubled in a month, we carefully analyzed the subsequent consolidation pattern to ensure our planned buy entry was solid. Here&#8217;s what we liked about it:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>$LVGO rallied 100% from its last base in only six weeks! <\/li><li>Only corrected 25% off the highs as it chopped around for a month.  That is a shallow correction after a powerful advance.<\/li><li> This consolidation was the first after the price set a new all-time high, so there is no overhead resistance.  <\/li><li>Looking at the price action from left to right, we see the price swings tightening up leading up to our trigger over the two-day high.<\/li><\/ul>\n\n\n\n<p>Our patience to wait for a low-risk entry point paid off big time!<\/p>\n\n\n\n<p>After a few weeks of chop, $LVGO exploded to a +20% gain on massive volume (on July 6).<\/p>\n\n\n\n<p>The chart below shows the subsequent price action after our June 19 buy entry:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2020\/07\/LVGO4.png\" alt=\"\" class=\"wp-image-6908\" title=\"\"><\/figure>\n\n\n\n<p>As of the July 9 close, we are still long $LVGO with an unrealized gain of +70% in our <em><a rel=\"noreferrer noopener\" aria-label=\"Wagner Daily (opens in a new tab)\" href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\"><strong>Wagner Daily<\/strong><\/a><\/em> model portfolio.<\/p>\n\n\n\n<p>From here, we will continue to let the profits ride until the price action gives a valid reason to sell. As always, we will immediately alert subscribers when it hits our stop to lock in profits.<\/p>\n\n\n\n<p>Although it can be tempting to chase a stock if you miss the breakout, this winning swing trade (once again) proves that patient traders continually get rewarded!<\/p>\n\n\n\n<p>If you miss a breakout, simply wait for the next low-risk setup and buy\u2014as long as the setup remains valid.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s easy to feel you&#8217;ve &#8220;missed out&#8221; when a hot stock breaks out without you in it, but the next low-risk buying opportunity is often just around the corner. Here&#8217;s how we entered $LVGO and rode it to a +70% gain\u2014despite missing the initial breakout. After the broad market formed a bottom in mid-March, Livongo [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-6902","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=6902"}],"version-history":[{"count":10,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6902\/revisions"}],"predecessor-version":[{"id":6946,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6902\/revisions\/6946"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=6902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=6902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=6902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}