Not for the faint-hearted in this environment, but I did say on a recent SCVR that I'd flag up any potential trade setups (after the recent breakout on Begbies Traynor, which I hold).
Well, to my eye, Plus500 (LON:PLUS) is looking very good.
Brokers tend to do well when markets are down, stockrank is 99 and recent trading updates have been positive, quote from May:
"ANTICIPATES THAT PLUS500'S REVENUE AND EBITDA FOR THIS YEAR WILL BE SIGNIFICANTLY AHEAD OF CURRENT MARKET EXPECTATIONS"
Looking at the chart, a long term base has been forming since late-2020, and the stock has stood up well, even in the recent heavy selling across the board.
What I really like is the tightening up in recent weeks on the right-hand side, classic 'VCP' action and something Minervini always looks for before a breakout.
The pivot for me is 1585p.
In the current environment, I would only enter trades that look exceptional, and this one qualifies - For anybody looking at entering, I would say using a stop-loss is a must. Safety first.
