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.
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.
CoryMitchell-CMT
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Still waiting to see if this sets up. Has pulled back and is consolidating.
Nednil
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@VPTcory, are you waiting for further pullback?
CoryMitchell-CMT
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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.
ABG1968
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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.
Dirtweed
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Hope you set up your stop loss on this play. Looks like the set up was not destined to be. It has fallen alot since then. trending down, but its unsettled for sure, up and down all over the place. Harder to predict patterns with smaller cap stocks like this one. I play the short game on stocks like this to take advantage of all the swings. Happy Trading! this si perfect example of why to set up stop losses folks.
CoryMitchell-CMT
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@Dirtweed, This one never triggered for me. It didn't consolidate and move higher like I was looking for. But yes, stops always very important.