In HTS - Out NTAP

by Adam Beaty

Performed two different trades today - first thing this morning went ahead and closed out NTAP from Friday for a breakeven trade.  We also went ahead and picked up HTS for a long trade.

Here is HTS...

Here is the new long position for the portfolio, HTS.  As you can see this is a classic gap play, which is the phrase I have deemed for looking for a gap fill after a nice downward gap and consolidation.  We have done a write up in the Trading Tools (Education) section on gaps, found here.  There are some interesting points to make about this chart.  First, this stock has a habit of gap downs, but it always fills the gap before gaping down again (this is a plus).  We also see support stepping in on this chart from the 50 (orange), 150 (green), 20 (red), and the 200 (blue) day moving averages are all coming together to add support.  Price target is a gap fill at 29.45 and a stop-loss can be placed below any of the moving averages.  Ours will be placed below the 50 day moving average at 28.43.  This puts 1% at risk in hopes of gaining 2.7% or a 1:2.7 risk/reward ratio.

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