Monday, March 3, 2008

Gander Mountain Knocks On The Door Again

It appears the decision to lock in profits on the Gander Mountain trade was a good one as the stock has move all the way back down to the breakout point and currently is resting on the long term trend line.

This offers some potential for yet another long trade.
If GMTN can bounce from here and close back above the trendline, then we will have potential for a very bullish move higher.

This trade also offers some very limited risk as we are right at the trendline and a bounce off of this line will be the trigger to purchase the stock, with a very close stop loss just under the trendline. Risk should be no more than 5%, but it is important that you have the stop loss in place once you are long the stock as a failure of this pattern may lead to a re-test of the $4 area.

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