Bull markets love “new merchandise.”
These are newer stocks that investors are still excited about.
Many of them haven’t experienced a proper bull market yet—and that’s a good thing.
There are fewer “bag-holders” standing in the way…
And far less overhead supply to slice through.
That brings me to our new Trade of the Week: Mobileye (MBLY).
Mobileye is one of today’s most exciting new stocks, and it’s a world leader in self-driving vehicle technology.
MBLY went public back in October 2022 and performed well out of the gate. It rallied more than 80% during its first four months as a publicly traded company.
Since then, MBLY has done nothing. It’s been trading in a sideways consolidation pattern.
However, I believe MBLY is about to wake up from its multi-month hibernation and enter its first true bull market run. And that makes today a perfect time to get involved.
Source: StockCharts
I suggest buying a starter position in MBLY today. I believe it can hit $100 within the next 18 months.
It’s also worth mentioning that MBLY has a short interest of 19%. So, this trade has “short-squeeze” potential, which can deliver big gains in a hurry.
Exit your position if MBLY closes below $39. That gives us a risk-reward ratio of 13:1 on this trade.
Action to take: Buy MBLY at current market prices.
Risk management: Exit your position if MBLY closes below $39.
Justin Spittler
Chief Trader, RiskHedge
