The weekly chart looks very good, at least for the short term. The problem with this bottoming stocks is that you have no way of telling when they are going to explode, or at least I don't. Sometimes they get stuck in a tight range for many years, but they usually explode. Here however, I am not looking for a long run, but for a small upmove on the daily. Weekly view here :
The looks like it bottomed. First there was a class a , a small move followed, and now we have a , with a class b . This is a pattern that I see very often and it usually signals strong moves coming.
I have been watching this stock for a few days. Yesterday, the Goldman Sachs analysts gave a price target for this company at 3.50& per share. Guess what happened today? It looks like there is some good momentum right now and I think we are due for a rally.
As I wrote on the chart, I will manage this trade according to the momentum I see in the next few days. If the stock is going to move upwards, it depends how it will reach the 5$ barrier. If there will be a slow move to that level, I want to take some money off the table. This means taking a profit, but that will be insignificant, the main reason is to reduce the risk. If however, I will see strength, I am not going to touch this trade until my first target at 6$. Only there I am going to take some profits, and let only a part of the position in play with a stop at a swing low (if there will be one) or at breakeven.
This trade is something new for me, as I haven't traded until now cheap stocks.