PIR Growth & Income Trade Entry & Trade Setup

PIR (Pier 1 Imports Inc) has broken above this downtrend line following the recent divergent low. PIR will be added as both an Active Gr & Inc. Trade with price targets T2-T4) as well as a quick short-term trade targeting T1 (about a 4% gain if hit). The current dividend yield of about 6.5% coupled with the potential for considerable capital appreciation (assuming the dividend isn't drastically cut or eliminated & the stock follows through on today's breakout) makes Pier 1 an attractive candidate for those looking for long exposure and/or growth & income investment ideas. Of course, the success or failure of this or most long-side trade ideas will depend largely on how the broad markets trade going forward.

PIR daily Feb 16th

PIR daily Feb 16th

With the first target so close (actual resistance at 4.58), a longer-term trader or growth & income investor might opt to take a partial position here, waiting for a break above the 4.60 level before adding. The suggested stop for this trade will be on a 3:59ET close below 3.74. PIR also has decent long-term support at 3.15 on the weekly chart so if this trade is stopped out, it might be added back as a new long entry around that level. Daily chart

2017-03-08T21:20:00+00:00Feb 16, 2016 12:22pm|Categories: Completed Trades - Long, Growth & Income Trades- Completed|Tags: |1 Comment

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