$SHOP TOP 20
Added 2024-05-26 17:06:29 +0000 UTCWe sold 20% of our holding in $HIMS at $20 to buy our first position in $SHOP at $57.40, $HIMS pulled back to $16 after this and $SHOP maintained its level for the week, making this a good use of our profits in $HIMS and now our entire position in $SHOP is profits from $HIMS.
This is where we see the real magic of compound investing, where our profits are used to start a position and when we start gaining, our profits are making profits, this causes exponential returns to our portfolio.
$SHOP finished the week above the yellow trend line but slightly below the 0.5 Fib....there is every possibility that the 0.618 Fib is tested at $49 and if we get support here, we have our second buy signal.
Adding at $57 makes a lot of sense, there is every reason it can bounce from here in this strict channel and confluence level
But this is also why we DCA into a position, so if a level is not held, we wait for the next Fib support and observe its test of support on this level.
The 0.618 Fib is the standard pull back level for a Wave 2 pull back.
