Home » Here’s Where I’m Buying Meridian Bioscience Stock

Here’s Where I’m Buying Meridian Bioscience Stock

Regular readers know that I search far and wide for stocks that are exhibiting greater strength than the overall market.

This was getting difficult for a while as the markets were dropping sharply at the start of the year.

But with the S&P 500 and Nasdaq finally showing follow-through to the upside, I’m starting to see better setups again.

One that I’m looking closely at right now is Meridian Bioscience, Inc. (VIVO).

Here is where I plan to buy it…

Daily Chart of Meridian Bioscience, Inc. (VIVO) — Source: TradingView

A strong earnings report in early February sent the stock 30% higher in a week.

Since then, price action has started to quiet down, and pullbacks have shallowed from 13% to just 5%.

This pattern tells me that no one else is selling. 

Each successive drop is less than the one before it, which is a sign that there were fewer sellers at the highs than last time.

My goal with setups like these is to wait for the area on the right side of the chart to get very tight – just like what is happening now with VIVO.

And the nice thing about this setup is that you don’t have to risk much to see if you are right…

The Trade Setup

If this is the breakout point I think it is, VIVO should not come back beneath the last pullback area.

Therefore, I can place a sell stop at $25.00 and only risk about 5% on the trade.

On the other hand, the stock has proven that it can move.

As I mentioned, it jumped 30% in a week last month. If you bought the breakout, it never went against you.

So, I’m risking 5% to potentially make 20% or more.

That is known as “asymmetric risk.” Others simply call it a good risk/reward ratio.

Whatever you call it, being able to risk a little for the chance to make a lot should be your primary goal as an investor.

Embrace the surge,

Ross GivensEditor, Stock Surge Daily

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

Whats in the Article