I was looking for a play on H1N1 and found an entry in SVA.
This trade was done with a shorter time frame in mind, hence I did not use the usual Ichimoku trend trading techniques.
One of the key things that I have done is to always have a stop-loss or trailing stop in place.
In this case, my stop was taken out on November 13 when the price goes below the high of the previous day and the trading range is getting smaller (a sign that a reversal is coming or it could just be profit taking before earnings announcement).
– Date : Oct 22
– Price : 7.56
– Reason : Bounced off support at 7.06
– Date : Nov 13
– Price : 9.65
– Reason : Trigger stop. Price lower than previous day’s high. Narrow trading range
Profit : (9.65 – 7.56) = $2.09 per share.
Number of Days hold : Around 3 weeks.
Having said the above, with earnings results out, SVA chart is showing that it is now above the kumo support; a bullish signal. However, the kumo is very thin and may be a very weak support.
I will continue to monitor SVA. Let’s see if it continues falling today.