Dynamic Trend Profile

ALERT: Travelzoo Inc. (TZOO)

TZOO is once again advancing on very good volume the past two days. After a strong $30 breakout move last April, TZOO pulled back slowly to the 75% ($25.65) retracement area where it has based out. This retracement area happens to also be an observable pivot point support area as well, which adds some strength to that price level. The gap formed back in April was never covered, but there are instances where the beginning of a gap can become a pivot support as well, which seems to be the case here. I don't think it is going to cover it in the near future.

Monitor TZOO more closely for a pullback to see if it will establish a quality swing trade buy setup. With the $6 price movement in Travelzoo the past two days buyer interest should pick up this month. (There is a PB room trade in progress that had a nice trade setup, but the RF and Star rating was not great.)

Travelzoo Inc. is an Internet media company that publishes travel offers from hundreds of travel companies. Travelzoo also operates SuperSearch, a pay-per-click travel search engine.

TZOO did not follow-through with more buying after this previous post. However, I have continued to monitor that trade for a future possible buy basis the chart pattern which defines a valid, quality risk/reward setup on a possible bottoming patten building. In other words, the longer this bottom holds the greater the odds will be we will eventually see a nice uptrend move in TZOO. So, here is the current TravelZoo (TZOO) DT Profile and a chart with the previous post trade parameters and setup, which I am using to make my own possible trade idea, or will use it in conjunction with a future buy trade setup if one develops again similar to this one.

I haven't updated this stock in a long time. Today in our live class I wanted to remind people how a very strong breakout move that retraces can sometime retrace to a lower risk buy setup yet never return a trend for a long time later. This stock is a good example. TZOO continues to build a base for a longer term rally, but it has yet to make that start an extended longer-term trend up yet after it originally hinted it wanted to do this. Ironically, when I look at this stock, I still find it having attractive qualities from a longer term base pattern setup. There is just too many other easier trading ideas right now to continue to watch this stock closely for a sustainable rally to begin and work out someday.

Since I am updating TZOO, might as well show the recent SB trade currently in progress, and on track to hitting or exceeding that target.