Bought a small pilot position in ARCTNASDAQ:ARCT prices gapped up on strong volume (10x the average) during the previous earnings before moving up to the $28 resistance level. The $28 price level served as resistance previously back during feb and april of last year so it was not surprising to see prices encountered resistance at that level. Prices moved sideways more or less at the top right side of the 1 year 3 months long base before it declined and undercut the pivot low of roughly $27. However, prices managed to find support at the 21EMA (green line). This is a positive sign that the stock is finding support. Prices formed a cheat entry but I missed out on the day of the breakout and only entered my position the day after (8 may).
While the entry was not right at the breakout level, i compensated it by taking a smaller than usual position in NASDAQ:ARCT due to its positive technical action. As the stock has moved up and above 1R, i have moved my stop loss to the entry price which gives me a free trade from here on. This means that even if prices move against me (as long as it does not gapped down which is a possibility), i'll breakeven on the trade. But if the stock moves up, I will be able to benefit from the upside. So i'm essentially taking on a risk free trade now.
