RGR has been a great trade…twice in just the last few months: first posted as a short entry for aggressive traders at 57.38 on may 2nd, covered (hit final target) at 34.35 just over a month later on june 8th for a 40.1% gain, then reversed the trade (long at 34.35 for aggressive traders) that same day and hit the final target for another 19.7% gain exactly 3 weeks later, for a cumulative gain of 59.8%… that’s why swing trading runs circles around buy and hold IMO.
once again, RGR looks to be offering an objective entry, this time on the short-side once again. if you recall on my original post (on the first short trade), i made a case for a blow-off top in RGR. if my original analysis was correct, and so far the subsequent price action confirms that it was, then that first short trade was the first of several waves down in RGR before all is said and done and the recent bounce that we caught it long on was just a normal counter-trend bounce. if not, then RGR is still a very objective short entry here because your downside (loss potential) risk on the stock is very small compared to the profit potential on the trade (R/R). a tight stop would be just above that horizontal resistance line that RGR has traded up against for the last 5 trading sessions (coincidentally, or really not, the former T1 level). personally, i am going to use the more liberal stop of that white (upper-most) trendline which currently comes in around 4 pts above the current level, which also lines up nicely with that 3/22 gap.
keep in mind that if RGR does continue higher to that level (broken uptrend line re-test & 3/22 gap area), that would also make an objective short-entry. therefore, one might consider shorting a 1/2 position here with plans to add the other 1/2 on either a push up to that level or if the stock turns down here and the trade starts to play out. consider RGR an active trade unless the stock gaps significantly higher or lower tomorrow. daily and 2-day period charts:
