RKT Analysis

[Pascal]

On February 3, I posted this analysis on RKT. The target exit was $69.38 or 5 days.

I opened a long RKT trade on February 4, at $65.35.

http://www.effectivevolume.com/conte...ebruary-3-2015

Yesterday, RKT closed at 69.31, which is 5.4% above its 5MA of the previous day. The stock is extended (see below). The question is therefore what to do with the position.



The best is to try both short and long positions at the close of yesetrday and see what stats are produced.

First, let's test a short overbought trade. We can see that the stats are slightly positive.



However, if we short, we should cover after just a few days.



Below is a buy trade at the close of yesterday. We can see that the stats are better, but mostly that keeping the stock for a lo,nger period should be a good idea, as we will ride the trend higher.





The only thing that I did was to simply raise the stop to 66.3. The target is now raised to $75.05



The sensitivity analysis also shows that I can increase the position on pull-backs.