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RKT Analysis
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.
![Name: RKT_TA.gif
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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.
![Name: RKT_T1.gif
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However, if we short, we should cover after just a few days.
![Name: RKT_T2.gif
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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.
![Name: RKT_T.gif
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![Name: RKT_D.gif
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The only thing that I did was to simply raise the stop to 66.3. The target is now raised to $75.05
![Name: RKT_T3.gif
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The sensitivity analysis also shows that I can increase the position on pull-backs.
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