GSM - what I see – potential for a nice return vs. the risk.Rick,
Here is what I see – potential for a nice return vs. the risk.
I have attached the weekly chart for GSM and it is having a change in trend. It has now established an uptrend and I would look for another HH. If it makes a LL this will invalidate my idea of a continuation of the uptrend.
Another point that is in the favor of an uptrend of the 200-period moving average. This is the first time this average is in an uptrend since September 2014. Does that really mean anything? Maybe or maybe not. But just another point to convince me that the trend might be sustainable.
Entry is the line 1 ($4.70) and I have a stop at line 0 ($4.17). If it hits the stop we have put in a lower low. Line 4 ($6.30) is the first target, and brings in $3 for each $1 that is risked. Once profits are taken off at the first target, the stop is moved to break even. The second target is adjustable.
Since this is a weekly chart, the expectation is this will probably take 1-2 months to hit the first profit target.
As I always say, I am always right – 50% of the time!
