I noticed ISLN late in the day on Friday and have reason to believe it may begin it’s next up-leg. There are so many great things about this stock, from it’s wkly which isn’t shown here but it’s threatening to breakout out to all time highs, to it’s daily action which has been picture perfect of a market leader.
Volume on breakouts has been massive while pullbacks remain in check. That one big volume day isn’t really anything to worry about as all great stocks have at least one substantially high sell off day. This sheds the majority of the weak holders and allows it to power higher. Once it overtakes that large red candle this stock should really take off. A really powerful stock remains above it’s 4 day moving average as this one did for most of it’s rise. It could consolidate a little more, but I wouldn’t bet on it. RSI has stayed above the key 40 level as well, in fact it’s stayed above the 50 level which is even more bullish. The ADX has had a chance to work off some of the overbought pressure as well and could turn higher any day.
The 15 minute chart shows where your stop could be at support and any dip from it’s current price (above support) could be a good risk/reward position. I’m still trading from a bullish bias, which could change early next week if my timing system gives a bearish signal. We are approaching a critical time in the markets from what I’m seeing so it goes without saying to trade cautiously right now.
