It is a dew drop, and several sharp bottoms ... we should buy it, and put in a stop below the recent low price.
What I like a lot is the rectangle, second half of April, first half of May, and, of course, that it has broken out above that ... and is now returning to the top of it ... in a cascade. Where's the stop? Below the rectangle. But, that is pretty far away. True, just before it broke out of the rectangle there was a very fine dew drop ... which could be used as a very close stop, here ... but, there's also this: I've been studying the possibility of waiting for bottoms to form in cascades, and it's kind of promising that, buying close to those bottoms and then using stops just below them.
Oh, by the way, in October FRBK broke out of a biggish rectangle with a big fat high dew drop - comprising a rectangle itself - oh, and then, after returning and then energetically beginning to rally it made a little ascending wedge high, dew drop fashion, before really moving for several days, so waiting for it to get moving would have worked out quite well. (Tight ascending wedges like that create their own close stops. It would have looked quite tradeable.)
Green invert hammer, in a six month up trending range. Had to think a bit but the stop is below the early may bottom, so, we could say $2. Or $2.05.
See, what I'm trying to figure out is how to get in as much as possible just before a good rally, and my theory now is to look for good context, which is pretty easy to spot - here, the April breakout above the February-March rectangle, the April and May heels, and now a nice little mountain, a return to the bowl before the mountain, and a bobsled runout - and then look for a special one day or maybe several day pattern. The invert hammer is special, and maybe special enough, plus, the stop is quite good.
The cascade of the last few days is very appealing. In fact, I predict the May lows will hold, so a stop below them would make a purchase at the closing price here fairly justifiable. And I find waiting for confirmation, a definitive end of the cascade, quite scary - it's in the nature of a habit - but I am studying what happens if one waits, in a situation like this. So I'm rating this a setup, not an actual buy, and we'll see what develops, now.
I'm having additional thoughts. I think it's headed for $7 ... actually, based on the price history I think it might be a long term play, headed to, oh, let's say 70 (to be a bit dramatic about it) ... but that even the move to 7 will be somewhat leisurely. I think what's predicted by this action short term is a move above this month's top ... and even that might not be exactly lickety split, and that's only 10%, so it could be said this isn't that important a trade. On the plus side, the five day chart a) is pretty dramatic, b) ends in a pretty substantial pair of bottom, so, based on that, I do propose a trade buying at, um, limit 2.77, yesterday's close, with a stop at 2.725, a bit off yesterday's (morning) low. (Today's Saturday.) So, where does that put us. I'm looking for a rally to 3.2, say, +43 cents (which happens to be +10%), and the stop is at -4.5 cents, so, 1 to 10 risk reward ratio, which makes it a qualifying trade according to Tim. Kind of saying it will take several days to reach it's target. At this point this is really just a study example and not all that interesting, to say that again.
A dip into the fundamentals shows ... one headline classifies it as a growth stock ... and the company produced a surge of revenues last year, and even a hint of profitability, after four year of minimal revenues and substantial losses. Sort of confirms what I was saying about it being potentially a long term type thing (although, as prices climb, watch the fundamentals closely ... it could eventually make a top). Don't know if I'm interested in drug stocks. Kind of feel like I'm expending a lot of, well, screen space, here, without that great a reason to. Oh, well, it is in play.
So, what I'm thinking is, another spike to 1.5 ... well, in that area. I mean, it's silly, but this stock seems to like to make double spikes. It's silly, but I'm sticking with it. Besides, the business story is kind of fun, as they just (this tiny company in an impossible kind of business) just got a contract with Alaska Air - biofuels, I was reading, are a pretty big part of any possibility of reducing air travel's environmental impact. But, actually, in my experience a contract of this sort - not that I know anything about it - but it's probably some sort of trial arrangement, or development and testing program - doesn't instantly turn this company into some kind of major energy supplier ... so, yeah, I'm going with the idea of a spike, not a sustained rally coming off of this. Nor am I saying anything like that I'm dead certain there will be a second spike. I'm gonna go with sort of a crazy plan, buy a hundred shares, limit .75, 'cause I think it's gonna gap open ... oh, and another hundred limit, let's say, .5, OK? Then try to sell them for ... hang on ...1.35. You know, it's probably another one that's not worth it ... but, it'll be fun to watch.
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