CoryMitchell-CMT
Long

Medipharm Labs (LABS.TO) Forming Rounded Continuation for Setup

TSX:LABS   MEDIPHARM LABS CORP
This stock has had an amazing run already, and it is setting up again. The stock has formed a rounded bottom continuation pattern.

I don't have a trade in this one currently, but since it is a rounded bottom I will wait for the next pullback. This has nothing to do with trying to get a better price. Rather, I want to see the pullback stay above the prior consolidation/swing low and then move higher. This helps confirm the price is still in a rounded bottom continuation pattern and likely to head higher.

Also, earnings are due out August 12. No point taking a trade right before. I'd rather wait for earnings and see what kind of setup we get. NO TRADE YET.

Since this stock has been exceptionally strong, I will utilize a trailing stop loss (based on ATR, indicator shown on chart). I utilize the CLOSING price method discussed in this article: https://vantagepointtrading.com/using-th...
Has pulled back too far. Will hold off for now. No trade. Will keep it on the watch list though for another possible setup down the road.
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Still waiting to see if this sets up. Has pulled back and is consolidating.
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Nednil CoryMitchell-CMT
@CoryMitchell-CMT, are you waiting for further pullback?
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@Nednil, Not really looking for it to necessarily pullback more. But it needs to stabilize in this area, and ultimately start moving back up above $6.30 (current consolidation high). But that entry point may change a bit if the price continues to drop and then consolidates, or continues to move sideways and forms a tighter range. If the price falls to $5.50 or below I will back off entirely, and leave it alone for now.

At this point, basically, the price has to stabilize (consolidate) and then move above the consolidation high to show the price is starting to move back up.
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The way I look at it will reach 7.09 tomorrow, the retracement is around 7.38, so I will see but i bet that will go up very slow after the earnings.
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