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URL:  https://boards.fool.com/buying-at-support-31525717.aspx

Subject:  Buying at support Date:  12/3/2014  11:04 PM
Author:  PuddinHead42 Number:  23033 of 23082

12/3/14:

Sometimes, buying a stock when it finds support at the 10-week moving average is clear-cut.

That means other times it's not.

Sector Leaders Baidu (NASDAQ:BIDU) and FleetCor (NYSE:FLT) are trading around their 10-week lines, but are they buyable now?
Baidu closed a hair above its 10-week line Wednesday, but it's not clear the stock is finding support. Shares are down 5.5% this week. Plus, the 10-week line sits below the prior buy point. That's a no-no when it comes to buying at support. In this case, it's better to wait for Baidu to reclaim its prior 231.51 with conviction before buying.

FleetCor is in a slightly different situation because it's finding support at the 10-week line, but it's a riskier buy because its 10-week line is also below its prior buy point of 150.02. So the strategy would be the same as for Baidu. Wait for FleetCor to reclaim the buy point before buying.

Buying when a stock finds support at its 10-week moving average is perfectly fine, so long as it's the first or second visit to the line after a breakout, and the 10-week line is above the most recent buy point.

http://stockcharts.com/freecharts/gallery.html?bidu

http://stockcharts.com/freecharts/gallery.html?flt
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