RAX has now hit the final (unofficial) target for a 38.3% gain in just two months. A great example of how most stocks fall much faster than they rise and why expanding one's trading or investment style to incorporate both long and short-side trades can increase your trading opportunities and enhance your returns. For those still short, consider booking full profits as the risk/reward to remain short is no longer favorable. Daily charts in order as posted with the updated chart last.
RAX was a short trade that recently hit it's final target for a 30.2% in under 3 weeks from entry. At the time, I suggested booking full profits and considered the trade completed as a bounce was very likely but I also added an additional downside target for those wanting to let some of their position ride or for anyone wanting to short or re-short RAX on a bounce. The stock did make a healthy bounce from there and then set up in a beautiful bear flag continuation pattern (shown clearly below on the 4 hour chart), of which it broke [...]
RAX has hit the final target (T3) for a 30.2% gain in less than 3 weeks from entry so congrats to those who "racked" up the gains on this one. As I had T3 listed as the final target and that level was hit and exceeded today (I only count the gains to the target, not beyond unless prices were to gap beyond a price target), I will consider this trade completed and remove it from the active trades category. However, I do feel the stock will likely continue lower to around the 45.50 area in the upcoming weeks so I [...]
RAX has now hit (and exceeded) the preferred target (T2) for a 20.4% gain in just over a week. As the original 2nd target level of 60.00 is the key support area, a bounce is very likely soon so unless your trading plan is to hold out for T3, which is still the final target for now, consider booking partial or full profits here or at least lowering your stops to protect profits. Charts in order as posted. Congrats to those who caught it.
I have revised the second target (T2) on the RAX short from 60.00 to 60.40. In the past, I would list my targets with the same price level where I expected the stock to find support (on shorts) or resistance (on longs), often stating that my preference was to set my sell order (to book profits on longs) or buy-to-cover order (profits on short trades) slightly above those levels as to avoid missing a fill as there are often large clusters of buy (sell) orders just above (below) a key support (resistance) level, especially when that level is very obvious to [...]
For those in the RAX short trade, be advised that RAX is currently trading down 12% in pre-market trading at a price of 65.80. Therefore, this trade should comfortably gap down beyond T1 & my preferred target remains T2 (60.00) so make sure to have your limit order in place to cover in case that target is hit soon (assuming that you were targeting T2). Depending on the price action & how the intraday charts set up on RAX after today, I might consider revising T2 as the final target. T3 at 53.00 is still the current final swing target [...]
Here's an updated chart of RAX with the corrected target sequence (previous chart had the price levels listed correctly but the target sequence showed two first targets (T1). Also note that an ideal stop for anyone preferring T1 would be on a move over 77.77 while those preferring T2 or T3 might consider a stop not too far above the 80 level.