CTRN has been on the site as both an active long and a long-term trade idea (for longer-term traders and investors) since february 3rd. it was originally suggested as a long on based on one of two criteria following the breakout highlighted on 2/3: either immediate upside follow-thru in price gains or a re-test of the downtrend line. prices did not move higher after the post but instead met the 2nd criteria, dropping back to make a re-test of the downtrend line.
from that level (9.80) the trade went on to hit the third target for exactly a 50% gain, where prices immediately pulled back as expected, digested the recent gains and overbought conditions, & then gapped above T3 resistance. prices then moved higher and drifted back, re-testing the T3 level (now support) several times before breaking below that support level on 8/2 and again on 8/3, which would have triggered a stop for most traders but probably not for longer-term investors holding out for T4 (final target). however, this morning, CTRN made a large gap down on a disappointing earnings report, opening at 13.05 which was below the former T2 (now support) level, definitely triggering any and all reasonable stops, still assuring a very profitable trade. the stock continued to plummet from the opening gap down and is now down about 25%, all the way back to the first target. this illustrates the benefit of using stops and raising those stops along the way on profitable trades to protect profits. CTRN will now be removed from the active trades and long-term trades category. charts in order as posted as for reference/educational purposes.
