Exactly three weeks ago today, while NIHD was an active long trade based off the 60 minute time frame (i.e.- a short term trade), I posted this first weekly chart in one of the updates stating: Regardless of whether or not the stock does pullback soon, I think this trade has the potential to be a much longer swing trade/investment assuming that the broad market holds up. Updated 60 minute chart (in which the current trade is based off of) as well as the updated and slightly revised weekly chart below, which shows the longer-term bullish potential for this trade. Unfortunately, as I’ve been preoccupied with bug-fixes and improvements to the back-end site, NIHD dropped off my radar after the recent short-term trade hit the first target and was subsequently stopped out. NIHD has been on fire recently and has gained over 46% since that last weekly chart/long-term trade post just 3 weeks ago today.
Normally, I would just let these go without much of a thought as if you trade long enough, you’ll have a library stacked wall-to-wall full of “The one that got away” stories. However, the reason for this update is two-fold: If any longer-term traders or investors did take a position in NIHD, be advised that the stock is quickly approaching the first weekly target (8.40). I do think the odds for a substantial pullback, especially if the stock hits that level soon before any half-decent pullback to work off the overbought conditions, are pretty good. Therefore, make sure to have your sell limit order in place if your plan was to take partial or full profits there. The other reason for revisiting NIHD is that I still believe that this stock has the potential to be a nice long-term trade. Although I would not chase the stock here, I do think that one could start accumulating or add to an existing position if NIHD were to make a decent pullback off the T1 area, especially if the stock were to backtest the to of the wedge pattern. I’ll do my best to keep an eye on NIHD although I continue to be preoccupied with the changes that I’m working on both the new email alert system as well as some other new features for the site. Congrats to anyone who caught a piece of NIHD or disregarded my previous stop suggestions on the 60 minute trade and held. NIHD was also good for an “official” 30.4% gain back in Sept in addition to the more recent 12% gain last month.