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DAVE Long Trade Setup Entry Criteria & Price Targets Revised

The entry criteria for the DAVE (Famous Dave's of America) Long Trade Setup has been revised to any move above 11.97, which will have clearly taken the stock above the primary downtrend line that was pointed out when the original setup was posted a few weeks ago. DAVE has continued to drift lower within the bullish falling wedge pattern since then, with the bullish divergence still well intact & even larger now.

 

Price targets have been revised to T1 at 13.26, T2 at 15.35 & T3 at 16.95 with a suggested stop on a daily close below 11.00 (or higher stop using at least a 3:1 R/R if only targeting T1). Daily & 120-minute periods charts above.

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Oct 28, 2015 11:43am|Categories: Completed Trades - Long|Tags: |5 Comments

5 Comments

  1. Compression Point October 28, 2015 11:33 pm at 11:33 pm

    I saw that DAVE hit $12.03 before close. Did you jump in?

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  2. rsotc October 29, 2015 7:56 am at 7:56 am

    Yes, although I had recently taken a starter position in DAVE which I added to yesterday. Would have preferred to see a little more volume to help confirm yesterday’s breakout but the charts look good & I think a short-squeeze is likely soon unless the broad markets start selling off & create some headwinds for the DAVE long. I only plan to add to the position on strength from here.

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    • Compression Point October 29, 2015 10:18 am at 10:18 am

      I took your advice and bought a little yesterday at $12.03. Maybe this one’s a winner. In your experience, does this play (breakout from falling wedge) work out more often than not?

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      • rsotc October 29, 2015 11:29 am at 11:29 am

        More often that not yes, HOWEVER, as with all bullish breakouts, ideally you want to see an increase of volume (1.5x the 60 to 100-day average volume) in order to confirm. Breakouts on average or below average volume have a substantially higher failure rate. DAVE is tracking about average volume so far today (and below yesterday) so I really want to see some volume start to come into the stock before adding to my position.

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  3. Compression Point October 30, 2015 5:16 pm at 5:16 pm

    Bummer. DAVE down today. I’ll know next time to check volume before I hit the buy button on these falling wedges. Maybe it will still work out.

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