Buying Pricesmart (PSMT)

I re-entered a long position in Pricesmart (PSMT) on Friday due to its price action closing out the week. Breaking above $60.50 Friday afternoon was a bullish move on the heals of its 2 week consolidation after a great earnings report:


The stock is overbought, which gives me some cause for concern. In addition, I expected the post-earnings announcement gap to be filled prior to the next move up. Nevertheless, I think it is still a strong candidate for a momentum trade but will keep my stop loss tight in case it turns against me.

Long PSMT




Now you can follow me on Stocktwits and Twitter!