HGG had a nice day on Thursday as it finally managed to close over 200 day moving average on strong volume. I was interested in this stock due to the fact that if has over 28% short interest. With that high short interest stock can easily go for a continuation run next day. It also has tendency to make continuation run like it did back in September and in November. So i post it on watch list alert for 8.76. I was also interested in trading a morning week open followed by strength.
Let’s check the intraday chart to see how the trade played out.
Stock opens at 8.55 right above previous days close at 8.48.
Bullish engulfing candle indicating buyers around and a continuation might be in the making.
Bought the stock at 8.66 (Aggressive entry) with stop below low of the day 8.50 area. Actual 8.76 alert entry would have been a “Conservative entry”.
Sold some shares 8.90 and 9.10.
Added more shares at 8.97 and 9 on this triangle break.
Sold all shares at 9.40.
Tried again later in the day at 9.38 for an end of the day run but this time i was stopped with .02c loss.
Nice 8.5% gain with .16c risk.
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