CHH
Well, this paper looks good today for go long.
What we see on the chart:
1. On June 05, the price with a gap went up with large volumes, which tells us that there is a strong long player who has been gaining position for several months.
2. On June 10, the long player encountered a large limit order at 14.5.
3. Moreover, the level is enhanced by a round number, retests and a false breakout.
4. We can see that this limit order began to be dismantled and there were several retests of the level.
5. Despite the fact that the market fell yesterday, the paper itself grew.
6. We look at the volumes: the bar is small, but it has a paranormal volume of 1.539 mln shares.
7. After the false breakout of the level, we did not roll back down.
Statistically, we can conclude that the long player will win in this struggle.
There are two possible scenarios here.
1. Safe scenario:
we are waiting for the formation of compression on H1. After breaking the level necessarily wait for the retest and enters the rebound.
SL order is placed 3-7 cents below the level.
I like to put very short stops, look at the nature of the breakout and maybe put a stop of 1-2 cents.
2. Aggressive scenario:
we set the Buy Stop Order in advance and wait for the breakout of the level.
Protective SL is set under the level.
But you'll have to go the position again if the first time the SL works.