Subscribers were able to stake out a so-far profitable long position in this stock yesterday after a camo entry opportunity was spotted during yesterday’s impromptu analysis session online.  The pattern we used is shown in the accompanying chart, and it was subtle enough to get us aboard even though we undoubtedly had plenty of bullish competition at that point. (The stock had opened on a huge gap and ratcheted higher for the rest of the day.)

Profit-taking was advised along the way, and anyone who followed my directions would have been left with 25% of the original position and a cost basis of  20.06 for the remaining 25% of it. The intraday high occurred a penny above the 20.84 target we’d projected, but there were strong signs the rally would continue to at least 21.18, the target of the larger pattern shown, before pausing for breath. Whatever happens, we have a horse in the race and a pretty good cushion against corrective weakness.  Traders should stay tuned to the chat room if and when 21.18 is hit, since we’ll need to implement an impulse leg-based stop-loss at that point. _______ UPDATE (July 17): Yesterday’s robust price action implies SLW is bound for at least 22.29 if and when it gets past its sibling midpoint at 21.72.  Above 22.15, I’ll recommend using an impulse-leg stop-loss based on the 30-minute chart. That means you should exit the position if SLW plummets through two prior lows, at least one of them ‘external’, without a visually obvious correction.  If you hold more than a single round lot, you should disgorge half at 22.24. If you’d like to play it more aggressively, consider shorting July or August near-the-money calls against stock 1:1. The goal would be to cover them, further lowering your cost basis, if SLW falls back from the target. _______ UPDATE (July 18, 12:17 a.m. EDT):  Yesterday’s bull trap opening exceeded the 21.72 midpoint resistance by six cents — not quite enough to demolish it and guarantee a move to D.  Accordingly, we should deploy an impulsive stop-loss based on the 15-minute chart, which would imply an uncorrected downdraft exceeding prior lows #1 and #2 (see inset, a fresh chart).  If SLW is headed significantly higher over the near term, we should see this correction reverse from ‘p’ or higher.