Hammy Buys: FEED, S

It's time for me to actually start doing this again. It's very easy to get out of this good habit, at least right now.

S:

Why I think this will go up: This is a channel/resistance buy. The trend has been up, and it also has been bouncing on the bottom level of it's current trend-line. A pure technical play.

When my assumptions will be proven wrong: If the stock price breaks down out of the trend, then the trend I've drawn is no longer viable, and I'm wrong.

At what point will you sell for profit? I will sell for quick profit on the next bounce up to the top of the trend-line. This level will change (go up) as time goes on, but could potentially be around 4.80 or 4.90.

FEED:

Why I think this will go up: FEED just experienced a huge triangle break-out. These breakouts usually go up, then consolidate for a little while before continuing very large up-trends. Through the breakout and consolidation, it started to form a "pennant". A pennant is a continuation pattern which mark a small consolidation before the previous move resumes. They usually mark a mid-point of a move.

When my assumptions will be proven wrong: This will not be a successful pennant if the price of the stock drops below the bottom horizontal line of the pennant, at around 3.30. If I stop out the stock at 3.30, I'll have lost $67. If I complete the move, I'll have made $600 ($1/share first move, consolidate half-way, $1 share second move).

When I will sell for profit: If the overall market shows a confirmed downtrend, or if the stock reaches it's objective around 4.30, I'll sell for profit.