ISLE (Isle Of Capris Casions) is an Active Short Trade, having triggered the previously stated entry criterion with a move below 26.10, including a break & close below the rising wedge pattern, on Thursday. The stock still offers an objective short entry here as it is still trading only slightly below the wedge pattern for the third consecutive day. Additional targets around the 21.25 & 20.25 levels might also be added to this trade soon as well.
ISLE daily April 18th
Previous notes, including the suggested stop & beta-adjusted position size can be found here in the ISLE Swing Trade Setup post from April 13th. As always, previous notes & charts for any trade can also be quickly reference by clicking on the symbol tag located below each post (Tags: ISLE).
There are a couple of additional considerations to mention on this trade as well as other trade ideas at this time. First off, be aware that we are heading into earnings season. As such, you should be cognizant of when any of your current positions or potential trades that you are considering are schedule to report. As earnings-induced gaps are always a possibility with any stock, some swing traders will close their positions before the company reports their quarterly earnings & provide any forward guidance.
Personally, I make the decision to hold or close any open positions before they report earnings depending on several variables, including that particular company’s history of large earnings-induced gaps, or lack thereof; how close that position is to my preferred price target; how bullish or bearish the charts look at the time; etc… ISLE is scheduled to report earnings on or around May 25th which should give this one enough time to play out for a move down to at least the first target, should it be headed there in the coming weeks as I suspect.
Another consideration with the ISLE short trade is that I am currently watching several stock in the casino & resort sector, including the VAC trade setup that was posted earlier today & just recently went on to trigger a short entry. Always be aware of the industry or sector in which your positions or potential positions belong to in order to prevent over-exposure to any one industry or sector.