the GMCR active long is trading down in AH (the after-hours trading session) following their earnings release. GMCR was recently posted as an aggressive “catch-a-falling-knife” trade and was posted as one of two type of trades: 1) a possible longer-term bottoming play based off the 2-day period chart or 2) a quick counter-bounce trade based off the intraday charts. the last update on monday suggested raising stops to just below 18 for those playing it as a short-term trade. the stock traded as low as 17.71 the next day, thereby triggering that stop.
however, for those in GMCR as a longer-term potential bottoming play, the stock is currently trading down to right around this very long-term weekly uptrend line. therefore, you might want to see how the stock trades tomorrow and throughout the week. just like the recent NFLX long (which also shares a very similar chart), consider a solid weekly close below that uptrend line as an official stop on this trade. i do still own the initial lots of GMCR that i started scaling into (in a couple of IRA’s) but also just took a shot at a long position in AH at 15.96. i plan to flip those shares for a quick buck if not stopped out first but depending on how GMCR trades the remainder of the week (as well as the broad market), i might continue to scale into the longer-term positions in my IRAs.