not one of my favorites but a decent risk/return profile none-the-less on S. daily chart shows a breakout of a nice downtrend line followed by a recent pullback to the break-point. S could be entered long around current levels with a stop below the horizontal support line at 2.10. keep in mind that is .20c, or about 9% below friday’s closing price of 2.30 however, this is a low priced stock with a first target of about 2.96 (29% higher) and a 2nd target of about 3.83 (67% higher). therefore, about a 3:1 or better than 6:1 R/R ratio if the trade pans out. as per my recent post on beta adjusted position sizing, S is a low priced, fairly volatile stock so best to use a reduced position size to account for the expected volatility and above average stop loss and profit targets.
