The reason I like this trade is because this stock seems to gap up on and earning is a few weeks away. I have taken the average of the last three gap ups to estimate what May earning has to offer. If CHUY can gap up to the estimate (especially if we keep having some more black candles at these lower FIBs, then hopefully we will be trapping alot of bears who will be buying to close positions and send us to the target.)
I will exit all at 34.02 which is 2:1 (Reward:Risk) due to the the fact that the last two gap ups have faded .
If it gaps up past 34.02 then I will move my stop to the 34.02 level and get trailed out or exit MOC.
I like buying stocks at these lower FIB levels especially with a number of black candles in a row which is why i do not mind the R:R of 2:1.
I believe the gap up was not a powerful due to the recent bearishness the market has faced.