Both of these charts are 6 month charts. I really wanted to emphasize how strong these support and resistance levels were so I panned it out to 6 months.
ZHNE: Below is a beautiful setup. My jaw actually dropped when I saw this. There is so much support at 1.22 it's unbelievable. I can put a stop at 1.18 which is way below normal here on the chart and still be in my risk guidelines. Heck, I can probably even drop it to 1.17. The upside potential for this is solid. There looks like a bit of short term resistance at the 1.25 level but the highs today pierced it and got to 1.27. Once we get passed 1.25 it could be all uphill from here until 1.38-1.40 area.
Entry: 1.22
Stop: 1.17
Exit: 1.40
Risk: 3%
Potential Gain: 13%
Shares: 400
Risk/Reward Ratio: 4.0
Potential Holding Time: 2-4 weeks
Only downside I see to this is the amount of volume. It's barely trading around 120,000 shares. I don't like to trade stocks unless it's at least 250,000. We'll see what happens.
COSI: This is one is looking good. However, I need to see it test the support levels at 3.60 which are pretty strong but I don't like the look of that candle for today. The current entry target could be a little too low but I think it's a good spot considering the bearish candlestick that's represented for today and the strong support level which the candle closed at. It's kind of stuck in between.
Entry: 3.50
Stop: 3.36
Target: 4.00
Risk: 4%
Potential Gain: 16%
Shares: 140
Risk/Reward Ratio: 4.0
Potential Holding Time: 1-2 weeks
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