Here is a quick review of a recent breakout trade in Sturm Ruger (RGR), which we recently bought and sold in the MTG Stalk Sheet ETF and stock newsletter.
Prior to our entry, RGR was consolidating in a tight range above the 20-day EMA, with the 20-day EMA above the 50-day MA. With all three main moving averages trending higher (200-day MA is in orange), we had a defintive uptrend in place prior to our entry. The tight price action from Dec. 22 to Jan. 4 established a low risk entry point on a breakout 34.70, which is what triggered our entry price on Jan. 5.
We decided to take profits off the table in RGR by selling into strength of the 8% up day on Jan. 13, locking in a 12% gain from a seven day hold.