RENN Stop Update

RENN was a long trade idea from 3/27 at $5.39 which is now up as a straight long (no options) 40%.

I have been suggesting using a 22 bar 60 min stop to allow for consolidations and the high intraday volatility that the 30 min 22 bar average has had trouble holding, but as I said in a previous update, I want to tighten the stop on RENN as soon as it is practical, I think now it is practical.

You may also want to consider taking partial profits, at this point you could even take out the original investment and let the profits run with a trailing stop.

Here's the trade idea on March 27th and a solid breakout from the continuation triangle. RENN is now in stage 2 mark up and if we were in a bullish environment I would look at this as a longer term trade, unfortunately I think it should be viewed as a shorter term trade and profits should probably be taken before a major consolidation which could be the end of the move. If there's accumulation on the consolidation a new position could be considered.

 I prefer the 30 min Trend Channel for a stop as it self adjusts to the stock's recent volatility, but as many of you do not have the Worden platform to run my Trend Channel, a 22 bar moving average is a decent proxy.

 Here's the hourly that has allowed RENN to move higher without intraday interference stopping the trade out,

The 30 min "WAS" too tight earlier in the trade, but now it is starting to make more sense as RENN gains momentum, pulbacks have been holding at the 30 min and if you don't have the Trend Channel, this would be my choice.

There is some very short term 1 min profit taking, but this far the 5-15 min charts are confirming RENN's move higher. Once again, as was the case Friday, we do not want to see an inside day or Harami candlestick close as RENN looks right now, that changed Friday so it's too early to assume we will see such a close, but if RENN looks like it will see an inside day toward the close, I would probably be more aggressive in profit taking.