Flag Setup
This is a video review on our trade in JVA on thursday 6/16/2011. Jva was a stock that we added in the 8 dollar range that exploded to 12 the next day off earnings. Typically stocks that run up 50% off a big earnings move they tend to have multiweek runs where you can often play then over and over as they dip then breakout then dip then breakout etc. Often a low float stock that breaks out on earnings wont dip back below the orignal breakout bar. What they tend to do is have sideways movement or consolidation and then form into a flag setup. The break of this flag itself can be a very powerful move setting up a secondary breakout. We entered this trade at 13.10 it touched 14.20 with 1 hour of our buy.
