THOR is printing a very pronounced triangle pattern. It's neither bearish or bullish. From what I have read this pattern has a 50% chance of going either way. Their is a recent news release stating that they are increasing the float on the stock. My plan is to short any pronounced up trend at the open while placing my stop 6 cents above my entry on the short side. What do you think?
Good plan, but a 6 cent stop loss is what I would consider within the realm of market noise. The spread on that stock may be more than 6 cents. Maybe you meant 60 cents? I guess whatever timeframe you are using to do the trade will dictate your stop. If I could short at todays closing price I would have to stop it around 1960 based on an hourly chart.
I'll critique your ideas on this stock but please don't take my remarks in a bad way, it's only constructive criticism. Regarding the stop, I'm not sure what you're time frame would be, but a 6¢ stop is likely to get blown out unless the trading gods are really on your side. Second, I don't see a triangle at all. This stock looks like it's in a sloppy uptrend but approaching previous highs & into an area where it gapped down & dropped hard. That might help a short, but it looks too risky at this point. FYI, I'm looking at the weekly & daily charts. If you want to see what I think is a really nice weekly symmetrical triangle, take a look at AMGN from about January 2001 until the present. It's approaching an apex and looks ready to breakout, but to which side is not clear yet (but my guess would be to the downside). Good Luck on THOR if you go with it!
At the risk of making a complete fool of myself, I'll give THOR a charting shot. One needs to be able to laugh at one self once in a while. I'll agree THOR is in a sloppy uptrend, but I believe it is following the lower channel of an Andrews Pitchfork. Major price support should be around $17.50. If it bounces, it might be good for a swing trade. If it breaks this support line, then a ripe short. MHO of course. Kind of fun going out on a limb once in a while.......... Anyone that has coached a kids team knows the pep talk, we learn more from loosing then winning. Either way, good luck.
THOR is setting up for a bottom fisher play... just needs one more black candle, then go long tomorrow!