I'm anticipating a bottoming head and shoulders pattern for AMRS. I've been long from 11/7 at $3.25. I entered a bit early to snag a position, and I'm using the bottom of the right shoulder area around $2.80 as my exit. Looking for a short term measured move to near $6 if it can break the neckline and hold above $4. There's also a gap fill close to $8, which would be my next price target area. I will probably add a tier 2 position above the neckline area near $4 and look to take profits around the $6 and $8 area if it gets there. The risk to reward is at least 2:1 in a good scenario and 4:1 in a great scenario. If it gets to $8, I will take probably at least 80% of my position off and see if it can run to $10 or higher. Any feedback or insights would be much appreciated. Thank you.
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Update - This trade has taken on about a month longer than expected to develop. Technically, my out around 2.80 hadn't been breached, but I didn't like how long it was taking, so I had to exercise a lot of patience to not give up on the trade, with especially to what I deem to be the right shoulder area.. Anyway, it is finally above the $4 "neckline" area and has closed above there two days in a row.. I might add a second tier here and move up my exit price to around 3.00.. My targets are around 5.50 and the gap fill area around 8.00.. Although this trade is taking its time to develop, the pattern and target areas are still intact.. Feedback, insight, comments? Thanks..