NEW YORK (Real Money) -- Greece is making it tough to trust even the most bullish of the bull charts right now. We'll have to see if the buy-the-dip mentality comes into play this week or if we reach a point where traders are indifferent about the situation with Greece.
Mobileye (MBLY) caught my attention Friday with a solid follow through from a breakout move on Thursday. Enough so that I started a position, but I'm looking for more. I like to have two target entries for most breakout stocks. The first is a continued breakout move, preferably after some confirmation. The second is a pullback bounce from just above the breakout.
If we do see the second because of overall market weakness, then I would be looking for a pullback into the $48-$49 area, but certainly not below $48. Then, I would be buying the stock after it makes its first higher close. Another approach would be selling bullish put spreads here using the previous channel for the legs. For instance, selling a $48-$46 or $48-$45 put spread out into July or beyond seems logical.
Obviously, I would prefer to see continued strength. The stock trading between $50 and $52 here for a few days, especially if the market stays red, would be a good sign. Then, I would look to add to the position on the next close over $52. The recent pick-up in volume either by the simple volume chart or the continued climb/consolidation/climb on the accumulation/distribution indicator is further confirmation of the bullish move.