• 5c7dcbd31d2ab2e8f889a628.png (600×625)

Here’s the nitty-gritty on the stock:

  • Textbook inverse head and shoulders pattern in place but not yet confirmed (Pending Bullish)
  • Consolidation over the last month, that could accumulate enough buying power to push the IH&S pattern (Bullish)
  • Nice support at the 10 & 20 day moving averages (Bullish)
  • Trend-line support holding off of the January Lows (Bullish)
  • Move below $5.04 would break key support (Bearish)
  • Previous move up was met with significant volume. Pullback has been on light volume (Bullish)
  • Since its IPO, has yet to put in a ‘higher-high’. (Bearish)

So here are the trade parameters I’d use.

  • Entry Price: Buy on a breakout of consolidation at $5.61
  • Stop-Loss: Tight Stop-Loss would be $5.23, wider stop-loss would be below consolidation at $4.99
  • Target Price: $7.90 – Best Case $12’s but don’t bank on it. 
  • Time-Frame: If the Market cooperates and continues to push higher, I would envision this stock being held 2-4 weeks if it doesn’t get stopped out before then. As always tighten the stop as you increase the gains.

 

Here’s the Chart-Markup:

5c7dcbd31d2ab2e8f889a628.png (600×625)

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