Is It Too Late To Buy Capricor Therapeutics (CAPR)

October 6, 2024

When is it too late to buy a stock? Suppose you are watching a stock for a while. It has been in a range between $5 and $10 for weeks, even months or years. Whether it is a specific issue with that particular stock you are watching or a reflection of the general market, it really does not matter.

One day, when you least expect it, the stock breaks out on heavy volume and zooms to $20 from $10 and within a couple weeks it is at $40. The crowd is going wild, all the short-terms traders are making all kinds of predictions.

Sure, the breakout with a gap up was a good sign and an opening for you to test a position. But the big money is made on big commitments. Where can make or could you have made a big commitment? What can you observe in the charts for Capricor Therapeutics (CAPR) shown below.

You say to yourself that this looks nice. What about the next chart? What do you observe?

Well, this does not look as good. Then what to do? Suppose you entered slowly at the breakout, then what? Frankly, it should not surprise anyone if the stock gyrates between the wide price range of anywhere from $4 to $5 dollars a share on the low end to $21.65 on the upper band as of today. More time needs to be given to let it fix a better range before making any decisions.

Suppose a weekly bar chart and a daily bar chart is placed in front of you, like the one below, now what do you see, if anything? Since beauty (uptrend) is in the eye of the beholder, you better be a good judge of beauty (uptrend).