Gaucho- Yes & no. Yes, I do think that CARA has a good shot of taking out that downtrend line on the daily chart but only after a pullback & consolidation. I think the stock has longer-term potential but I strongly expected a pullback off the T2 level & even posted before & as the target was hit ( http://rightsideofthechart.com/members/rsotc/activity/16831/ ) that I planned to book full profits there & may look to recycle back in as a swing or trend trade later. I’d like to see how the stock trades for a bit (days or even weeks) before determining if & when to re-position as a swing trade (I might day trade it until then).
As of right now, CARA has pulled back to dual support levels (horizontal + trendline) on this 60-minute chart, which is likely to provide at least a bounce trade (i.e.- quick day trade) although maybe this proves to be the end of the pullback with the stock going on to take out the T2 level & primary downtrend line in the coming weeks. However, I just can’t make a strong enough case to add it back as a swing trade as other than a pullback to support, I don’t see much else on the chart that would confirm another swing trade entry just yet.

Do you see any chance that CARA will continue its ascending path breaking the downtrend lines?

Which could be a new entry point? (Fib78,6% is $7,93)

Regards