MTL Long Idea

18 Jun 2013

I'd like to enter around current levels at $3.10 on a break of the descending trend channel. I'm looking for this thing to base out around $3.00 and continue to recover higher. I took a short mid Feb once the neckline of the head and shoulders was breached, and that target has since been reached. I'm looking to reverse my position using half of the profit from my previous trade. This particular stock seems to follow technical patterns very well, and we will see if that trend continues to hold. The risk/reward for my outlined trade is perched at 3.75:1, so that is also in my favor. I'm stopping on a daily close below $2.50, and my target is a touch of the 200 day moving average, which will be somewhere between $5.00 and $5.50 if the trade ends up working out.