Noticed HMNY on general trade alert for potential dip buy. Didn't exhibit the behavior pre-reqs, BUT there was a breakout of a strong resistance level at 3.84 ( 30min chart). 

 

Resistance broke with 30min candle, closed at 8:00am (PDT) @ 4.10. 

Lowest point after 8:00am (PDT) was 3.89 - just 0.04-0.05 cents off of previous 30 min resistance high of 3.86 @ approx 8:21am. 

Rallied sustained from +/- 3.80 to 6.4 high, for approx 60 percent + gain.

 

1st profit target:

Entry: 3.94 (ideal) Best case entry would have been @ 8:21am near or off of previous resistance becoming support. 

Stop area: 3.70 ish, or 5 percent.

Target areas: 

immediate high of 4.24 +/-(also near 8/15 high on 4 hour chart). 

2nd target area woud be 4.80 +/-. (5/23 high, 4 hour chart)

3rd target area would be 5.20 +/- (2/17 high, 4 hour chart)

stop area would be moved to 3.88 , approx 2 percent.

 

Worst case scenario 5 percent loss.

best case scenario, approx 30 percent + gain. 

 

Final thoughts?

 

Is this trade realistic? 

Pros

Yes, 4 hour chart shows break out volume is 3rd largest amount in approx 7 months.

Breakout confirmed on Hour Chart, highest volume in last few weeks

30min chart, highest volume in several days.

There is an established support zone of 2.25-2.50 for the last 7 months.

immediate resistance is smashed, converted to tested support.

Cons:

Trade would have taken place AFTER first hour, close to EST lunch hours.

Initial target and stop was R:R of 1:1 ....very bad

2nd target was 1:4 or better

Trade would have required all day monitoring using 1 hr and 4 hr chart as reference. Basically, trade/profit chasing unless willing to take gain at 10-20 percent and quit. Could I have pulled this off?...*maybe* with a little bit of time to kill.