12% gain on a 7-day hold – Sturm Ruger ($RGR)

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.

The entry point is detailed on the chart below:

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.

Here is a snapshot of the subsequent price action after our entry:

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.