PETS 1D ASCENDING TRIANGLEAscending Triangles are repeatable trading chart patterns.
Ascending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
Whatever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
Pets
KIN Bioscience- accumulate and play bounce into 2020 MACD RSI MAHello team,
KIN has momentum going into 2020 - 1) biotech 2) biotech focused on pets and animals! 3) small cap - 330 million look for a double in a year or two or Aquisition. 4) chart hit a solid bottom in mid Nov 2019 with nice buying and selling action in a strong uptrend kissing and bouncing off the 20 day MA - also importantly this stock has spent very few days below 20 day MA in past couple months.
Technically it seems MACD and RSI will fall slightly to flush out the stock around -2 or -3 % by/on this Friday 3 Jan 2020 and keeping an eye on these indicators - I would load up on the stock from -1 to -2.5 % so from like $8.41 to $8.33 on Friday and play the bounce for the first real week of 2020 when volume comes back into the market. This could be a nice entry point for a multi month trade if KIN takes off or trade it for a week and take a plus %10 with chance that small cap stock skyrockets 20+ with biotech momentum from FDA etc... I would give up on the trade if the MACD and RSI fall below those levels and fail to show a clear turnaround by like Wednesday of the following week. also a stop loss at $8.28.
This looks like a nice gamble with roughly %3 max loss with upside of a highly probably +5% on bounce and a less probable 10% bounce and also a slight single digit chance the stock flexes for 20%+ as these well played biotech tend to do - especially lately
cheeeeers - I will be buying Thursday and Friday of this week if the stock is down -1% or the MACD and RSI show a clear reversal with positive gains in stock - then just hop in and play the trade for a longer period of time with by and hold. Just sell the stock higher
$PETS Heading To New Highs$PETS made a major breakout yesterday on heavy volume after a strong earnings beat. The $24 resistance level was broken through and we see the stock set to keep climbing. In looking at Q2 results, here are the highlights:
PetMed Express (NASDAQ:PETS): Q2 GAAP EPS of $0.33 beats by $0.07.
Revenue of $69.94M (-2.0% Y/Y) beats by $0.29M.
$PETS is also paying a quarterly dividend of $.27/share for a yield of 5.56%.
PetMed Express, Inc. and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, and other health products for dogs and cats directly to the consumers. It offers non-prescription medications and supplies, such as flea and tick control products, bone and joint care products, vitamins, treats, nutritional supplements, hygiene products, and supplies; and prescription medications, including heartworm preventative, flea and tick preventative, arthritis, dermatitis, thyroid, diabetes, pain medications, heart/blood pressure, and other specialty medications, as well as generic substitutes. The company also sells food, beds, crates, stairs, strollers, and other pet supplies. It sells its products through its Internet Website; telephone contact center; and direct mail/print through brochures and postcards. PetMed Express, Inc. was founded in 1996 and is headquartered in Delray Beach, Florida.
As always, trade with caution and use protective stops.
Good luck to all!
"Bottom" Play on PETSA negative article smacked PETS down over 40% in just a few weeks. Since then it has leveled off and seems to be close to squeezing some shorts out. Volume has NOT confirmed a move, but price action has hinted at one, with the highest close (and first over 8 ema) since the final meltdown on 8/23. This isn't my most confident play, but I love the gains from these bounces (See TEVA today...which I was playing weekly calls on the last 3 weeks, and failed to get one last friday for this week...smh).
Entry over 37.44 with big volume
Tight stop at 36.50
(always tight stops on these plays, OR, I usually just buy calls with the amount I'm willing to risk and let it go to zero)
Potential price target over $41