The question is what if the stock does not fall below the 200 day SMA and comes within the AIM buy zone?
Good question. If it doesn't break the 200 day SMA, at least it has, for now, a basis of support so you may consider the stock to still be in a long-term uptrend, even if the shorter term is scaring the heck out of you. If it's otherwise in a buy area, you might want to make 1/2 of the buy now, then wait it out to see where it goes relative to the 200 day SMA. Worst case it will dip, then go back above, in which case you can execute the other 1/2 of the buy at some point down the road. If it instead resumes the upward movement, never crossing the 200 day SMA at all, you'll still profit from the smaller buy, and still have more cash left over.
Sound reasonable?
Best,
AIMster
