Genesee & Wyoming Inc. (GWR) bottomed at $41.56 in 2016 and has been moving steadily higher since. The rally since the start of 2016 has shown some tendencies which can aid in picking an entry area. Mainly, the price tends to rally and then move sideways within a range. In November the price rallied to a 2016 high of $80.73. It then experienced a sharp pullback, but then paused and rallied off the $69 region. Based on the tendency to range, and $69 being the closest support area within the uptrend, $69 to $68 is the potential buying zone. The stock has also shown a tendency to have a false break through the bottom of range before moving higher. Therefore, traders may need to give this trade a large stop loss (below $65 for example), or alternatively look for an entry near $67 or $66 if the price pulls back that far. This provides for a lower-risk trade as the entry point is closer to the stop loss level. The price target on this trade is $83.
Read more: Buy These Uptrending Stocks on the Pullback (LRCX, CPRT) | Investopedia http://www.investopedia.com/stock-analysis/cotd/022017/buying-these-uptrending-stocks-pullback-lrcx-cprt-lrcx-cprt-gwr.aspx#ixzz4ZKRS83kR
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