VRML Follow Up

VRML was a long trade idea from Tuesday June 28 at $3.88 I subsequently followed up on the trade the next day and again on 6/29.


This morning VRML continues to move higher and is currently at a gain of nearly 9%.

 Original trade idea

 The idea was based on a very strong 60 min leading positive divergence.

 This chart shows a trailing stop using a 50-bar average on a 30 min chart.

For those who entered around the $3.88-$3.90 level this is a wider stop still using a 50-bar average, just on an hourly chart and virtually guarantees at least a break even trade, while allowing plenty of room for a consolidation.

For those who may want to add to the trade or initiate a new position, I would look to the 22-bar moving average on a 60 min chart.

The 22-bar is in blue. I would just double check the the 14 bar 60 min RSI to make sure t's still above 50 before buying on a pullback to the 22-bar average.

If you are running TC-2000 you should be able to set a moving average alert letting you know when such a pullback occurs, so far the only one was pretty short lived. Usually subsequent pullbacks in maturing trends are deeper with each pullback and thus may last a little longer.