Tuesday, February 12, 2008

Gander Mountain - A Possible Trend Shift

Gander mountain seems to be trying to come back to life, as its bear market took it from $16 to $4 or a decline of 75%.
There are multiple signals that are calling for the stock to break from its major downtrend and make a run towards $10 at a minimum.

The stock has a very large test ahead of it breaking the downtrend line off the $16 high.
Also, it has formed a "W" bottom with volume confirmation and a close above 5 3/4 should break the stock out. Of course we will need the stock to have an expansion in volume when it breaks above 5 3/4.

But, I get ahead of myself.
First thing first, as the stock needs to close above the intermediate term trendline from the last long term high at $16.

Keep in mind that this is a high risk venture, but it also may deliver a very impressive double!
Don't forget to use your stop loss orders to limit your losses should the trade get triggered.
Place your stop wherever you feel at ease. Personally I try and risk no more than 18% on a high risk equity trade such as this.

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