When it comes to finding the “perfect” stock to invest in, the secret is often all about timing.
Most investors have heard of the phrase “buy low, sell high.”
While that would be a great practice in an ideal world, often we have to settle for buying in high, and selling higher.
Using charts can tell us exactly when the right time is to get in, and when to get out, and can result in profits of over 60% in as little as 6 months, with little risk.
Reading charts can provide valuable insights for investors, and ensure we get the largest profits possible.
However, technical analysis can be very tricky and investors can still fall prey to the biggest pitfall of all: our emotions.
Luckily for you, I do the technical analysis for you and tell you what to look at and what to ignore so you don’t ever have to get “emotional” about any one stock or another.
A stock that I’ve had my eye on for a while is Comerica, Inc (CMA).
CMA has had some truly impressive gains, shooting up over 60% from September to March 2018 before becoming more stable and steadily increasing since then.
Perhaps even more impressive, CMA has consistently beat earnings every quarter for the last year and beyond.
Of note, CMA has beat by almost the same amount each quarter as well, which really speaks to the consistency of this stock.
Now, you may be wondering if CMA is so great, why have I just been keeping my eye on it and haven’t brought it to you earlier?
Well, as I mentioned before, these things are all about timing.
While CMA has performed well overall and seen significant gains, it has also had dips.
If you’re not being intentional with your timing, you might end up getting into a well-performing stock like CMA just as it plummets.
You may then mistakenly believe that you were wrong to invest in CMA or think that it’s heading for a downfall, when in reality, you just got in at the wrong point.
By tracking CMA’s movement, we can notice patterns which can then inform us when the “right” time to get in would be.
Now, you’ve heard me talking a lot about CMA’s chart and how I’ve had my eye on it for a while.
One thing I’ve been waiting for is for CMA to come back down to the line of support right around 91-92.
In the past, CMA has come down to that line and then immediately bounced off, creating a fairly consistent pattern that we can then predict will likely happen again.
At the time of writing, CMA is hovering just above that line of support, and I predict it will soon drop down to touch it and then bounce off very quickly, as it’s done in the past.
Now, you may be wondering why it’s important for us to know this, if CMA just keeps coming down to that same point.
While it’s true that for the last couple months CMA has consistently come back down to that line despite bouncing up initially, it still allows us to make a nice profit with very little risk.
Because we’ve seen this pattern happen again and again with CMA, we can predict that it will drop down to the line of support, bounce up, and climb for a while before beginning another descent.
So, while this may not be your top choice for a windfall of cash, it does allow us to make quick, consistent profits by tracking the chart.
If you’re thinking that this is all just some kind of dark magic and it can’t possibly work like that, think about the fact that it’s largely a self-fulfilling prophecy.
Sure, CMA likely wouldn’t move that way on its own, but there are other technical analysts out there looking for the exact same things that I am.
They’ve also noticed the pattern and the line of support, and when CMA drops down to that lien again, they and their clients will likely buy in at the point, sending the stock bouncing back up.
It’s not magic or trickery, it’s just reading the charts and not being emotional about our investment decisions.
So, keep your eye on CMA for yourself, and watch its behavior.
Before you know it, you’ll be seeing the same things that I am.
