I bought Tecnoglass (TGLS), and in a moment I’ll discuss further why I’m in this trade and how and why you should be in this too.
But first a quick note about our publishing schedule and next week’s Watchlist…
US markets and our offices are closed all day on Monday, Sept. 6 for Labor Day. So, expect the next Watchlist to hit your inbox before the open on Tuesday, Sept. 7.
Now back to why I bought TGLS…
Tecnoglass is a company and a stock that I’ve followed and discussed before in Stock Surge Daily back in May.
It is in a highly charged market segment for building products that are surging in demand around the US and beyond right now.
It scores really well again with my Stock Surge Indicator (SSI) system.
And while it is not currently one of the surge stocks on the Watchlist this week, it has similar characteristics in its trading and very positive scores using my SSI system.
The company is a specialist in making and selling architectural glass, windows, doors and related products for residential and commercial buildings.
And its glass has particular advantages, as it’s reinforced to deal with major weather events – like much of the US and Caribbean has had to deal with over the past weeks.
Now, to start with the trade, the stock is red hot.
Shares are up 185% so far this year with no sign of slowing down.
It scored a 99/100 on my SSI meaning it is stronger than 99% of stocks in the market right now.
The stock made a nice consolidation over the summer with clear resistance at the $20 level.
Daily Chart of Tecnoglass (TGLS) & SSI — Source: TradingView
Once the stock got above 20 bucks, it took off – up 30% in just three days.
Daily Chart of Tecnoglass (TGLS) Breakout — Source: TradingView
Unfortunately, I missed it.
But it looks like the market gods are giving me a second chance.
After a 21% pullback right to the breakout area (See how these levels stay significant?), the chart has again tightened up.
Tecnoglass (TGLS) Entry & Stop Levels — Source: TradingView
Notice the shallower price action toward the right side of the chart.
The last pullback was contained to just 7%, a good sign that selling is likely exhausted.
So, I bought TGLS stock when it got above $24.00.
I am working a stop just beneath the swing low at $22.10 for an 8% risk on the trade.
Maybe it will work.
Maybe it won’t.
But my risk is defined, and the profit potential is big. So, for me, it’s worth a shot.
And remember, I am always on the lookout to avoid a losing trade – as I discussed at length in the Aug. 31 issue of Stock Surge Daily.
Embrace the Surge,
Editor, Stock Surge Daily