OSTK (Overstock.com) was added as both a long entry & a trade setup on April 28th with dual entry criteria: An aggressive long entry while the stock was trading at the bottom of the bullish falling wedge pattern at that time or an alternative, more conventional entry on a breakout above the pattern. The aggressive entry trade exceeded the suggested stop criteria but the alternative entry has now triggered with a breakout above the top of the pattern. As OSTK continued to move lower within the pattern, I have added a new price target (T1 at 17.72) and re-sequenced the former T1 at 18.30 to the second & final target. Also note that a substantial horizontal resistance level has formed not too far overhead around the 16.18ish area. My preference is to only take a partial position here while waiting for a break above the 16.20 level before adding to the position. Suggested stop for this trade would be on any move below the 14.49 level.
OSTK daily June 6th