Highly recommend reading Stan Weinstein's book - Secrets for profiting in Bull and Bear Markets
Whole entire book is worth it's weight in gold.
He argues one of the best if not the best reversal pattern is the inverse head and shoulders. In my opinion UVV is setup beautifully and has just broken out of the "neckline".
Further, stock is healthy - price trading above weekly 30 and 10MA
Really love this setup, even if I'm wrong (highly likely), I'm going into this trade idea happy to have just found this setup.
Options are not very liquid, the only downside to this idea. Probably should have done shares, I didn't get a great fill but I'm swinging this a month out (at least) so if my thesis is correct , it won't matter.
TA implies the measure move is from bottom of "head" to neckline, or $22 , therefore target would be $83 with this set up in coming months - year
Also volume buy spikes indicates long base of accumulation by institutions.
Note - as with ALL breakouts, watch for a retest bounce, any pullback is a chance to add for this idea IMO, a break below the 10wk MA mitigate risk, break below 30wk MA invalidates trade.
Will be happy if I'm right and happy if I'm wrong - setup is beautiful
Cheers
Whole entire book is worth it's weight in gold.
He argues one of the best if not the best reversal pattern is the inverse head and shoulders. In my opinion UVV is setup beautifully and has just broken out of the "neckline".
Further, stock is healthy - price trading above weekly 30 and 10MA
Really love this setup, even if I'm wrong (highly likely), I'm going into this trade idea happy to have just found this setup.
Options are not very liquid, the only downside to this idea. Probably should have done shares, I didn't get a great fill but I'm swinging this a month out (at least) so if my thesis is correct , it won't matter.
TA implies the measure move is from bottom of "head" to neckline, or $22 , therefore target would be $83 with this set up in coming months - year
Also volume buy spikes indicates long base of accumulation by institutions.
Note - as with ALL breakouts, watch for a retest bounce, any pullback is a chance to add for this idea IMO, a break below the 10wk MA mitigate risk, break below 30wk MA invalidates trade.
Will be happy if I'm right and happy if I'm wrong - setup is beautiful
Cheers