I just returned from Hawaii about three weeks ago. I didn’t get a chance to fly Hawaiian Airlines, but I’ve heard a lot about the company and its potential for growth.
A good friend of mine was excitedly planning to buy this stock as it pulled back into $13.00; it did, and he did! He is really pleased as I write this for you (July 23).
The List
Here are a several reasons I like this gap up so much and I love this for a long trade.
1 Anyone who went short on 7/17, 7/21, or 7/22 really had no other choice but to buy to close this morning, since HA was gapping above all of those candles.
2 Based on some Fibonacci price levels, HA retraced to a strong level giving the stock plenty of breathing room and a nice discount after the high price levels it was at not too long ago.
3 Volume really came into the stock, and a really pretty candle is shaping up.
4 The stock is closing above the neckline of a double bottom, which is right around $13.81.
5 HA will likely close above the 100 Simple Moving Average. If it does, I’m expecting some selling pressure to come in. If HA does pull back at all it will be a great buying opportunity. Think VNDA back in June when I wrote about that one.
The Trade
For these reasons I would be placing a long trade on this stock, most likely with shares. My stop will be below $13. Ultimate target is approximately $18.38 based on the Fibonacci projections.
Create your plan folks and follow it! Until next time!
