RRGB - Great price action so far (buy the next dip)
RRGB has the hallmarks of a stock that could potentially be a great winner. It broke out of it's base formation on 1st March on earnings beat with a strong breakaway gap (Breakaway gaps signify the beginning of a new trend and does not get filled in the near term).
It then proceeded higher over the next few days before pulling back to the breakup level @ 10.60 on 14 Mar, and then bounced right off again from there. This classic "break up and retest" establishes the neckline as the new "resistence turned support".
If one had been watching this stock, going long shortly after this "retest" would have been ideal.
However, since it is likely the trend is still in early stage, any near term dip (eg to fib retracement levels of 38-50%, or formation of bull pennant or flag etc) would still be a good opportunity to long. Let's see if the opportunity presents soon.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
It then proceeded higher over the next few days before pulling back to the breakup level @ 10.60 on 14 Mar, and then bounced right off again from there. This classic "break up and retest" establishes the neckline as the new "resistence turned support".
If one had been watching this stock, going long shortly after this "retest" would have been ideal.
However, since it is likely the trend is still in early stage, any near term dip (eg to fib retracement levels of 38-50%, or formation of bull pennant or flag etc) would still be a good opportunity to long. Let's see if the opportunity presents soon.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Comment:
Since going long @ 11.35 ("ideal entry" shown), RRGB's performance has been spectacular. Despite the recent steep pullback from a high of 15.87 back to 13.65 (point D) recently. it is still recording a 20% profit in a span of 1 month.
Point D (most recent pivot low) @ 13.65 happens to be a confluence of:
1. 100% fib extension of AB projected from C and
2. 38.2% fib retracement of the recent BC upswing
However, a stronger support is probaby at 13.30 (red line shown). I would raise my stop loss to just under 13.30 for now.
Since going long @ 11.35 ("ideal entry" shown), RRGB's performance has been spectacular. Despite the recent steep pullback from a high of 15.87 back to 13.65 (point D) recently. it is still recording a 20% profit in a span of 1 month.
Point D (most recent pivot low) @ 13.65 happens to be a confluence of:
1. 100% fib extension of AB projected from C and
2. 38.2% fib retracement of the recent BC upswing
However, a stronger support is probaby at 13.30 (red line shown). I would raise my stop loss to just under 13.30 for now.
RRGB - potential to enter on this dip
RRGB could be finding support @ 13.30 during this recent dip with bullish divergence now apparent on its hourly chart. However I have to caution that bullish divergence could be short lived (especially when on shorter time frames).
I may test a small position as soon as it breaks above 13.65 (where the hourly chart dotted trendline is), however should this near term support @ 13.30 breaks down, then I would be on the lookout for re-entry nearer 12.50, which is a horizontal support as well as the 50% fib retracement of the recent AB swing.