EMES gapped down hard 2 weeks ago, since then the market seems to be coming to terms with its new base / level.
Earnings coming up soon, probably a reasonable chance that it will range until then, but if you check the spread post- gap at current prices it's ranging over 50%. Not to mention its currently at the bottom of the range.
This is a setup I have been looking at more and more (after being burned from a biotech I had no business being in) and am really coming to like the structure.
No trade for me yet, but if I did it would look something along the lines of 8% stop loss, price target 30-50%.
Earnings coming up soon, probably a reasonable chance that it will range until then, but if you check the spread post- gap at current prices it's ranging over 50%. Not to mention its currently at the bottom of the range.
This is a setup I have been looking at more and more (after being burned from a biotech I had no business being in) and am really coming to like the structure.
No trade for me yet, but if I did it would look something along the lines of 8% stop loss, price target 30-50%.