Long Position in GCAP ahead of earnings and measured move
We are interested in this stock going up. It would be a good idea to buy some, there is no reason to use puts as protection at the moment.
The reverse of the downtrend has begun, lets look at why this is a good idea
Rationale for the Trade
Opinion
If there is some temporary exhaustion from the recent rise from 3.75 or 4.00 up to 5.00, or the HUGE spike it could be time for buyers to lose some of their enthusiasm for a pullback below 4.60, but even if we enter this trade a bit early it would still mean a buying opportunity given the power of the recent lift-off....
I would look to abandon this position on any moves below 4.40 and approach of the $4.00 then fundamentally the story for GCAP - Forex.com would be very different and the news coming out about the company would be extremely negative.
The reverse of the downtrend has begun, lets look at why this is a good idea
Rationale for the Trade
underpriced stock with a decent business
earnings misread, or the expectations were set too low
the depth of the decline has measured targets for its retracement
part of the rally has already started
classical chart pattern of cup with handle base
the breakout from the base already occured
it can rally 25% or better from here
Opinion
If there is some temporary exhaustion from the recent rise from 3.75 or 4.00 up to 5.00, or the HUGE spike it could be time for buyers to lose some of their enthusiasm for a pullback below 4.60, but even if we enter this trade a bit early it would still mean a buying opportunity given the power of the recent lift-off....
I would look to abandon this position on any moves below 4.40 and approach of the $4.00 then fundamentally the story for GCAP - Forex.com would be very different and the news coming out about the company would be extremely negative.
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