Stocks Trade idea on BRS
The Trade Ideas scan labeled “Trend Change Lubricant” is pointing towards a wonderful short squeeze opportunity with a chart pattern emerging from an exceptionally tight range and basing formation. Bristow Group (BRS) just had earnings and the company surprised with better than expected results. The percentage of short sellers in this stock is a whopping 64% and they will have to decide what to do if BRS breaks out of this long tight basing range. If they decide to cover their shorts by buying the stock back, we could see a nice short squeeze higher. With a relatively low float of shares in circulation (32 million), we see even more reason for continuation out of this tight range.
The Trade of the Week is conditional of a trade above 8.13 in BRS this week.
Should this occur and the trade becomes live, the suggested stop will be 6.95 and the suggested target will be 10.75. So risking 1.19 to make 2.61 is the type of risk/reward we want to deploy for position trading in this fashion. As always, use only the amount of shares you are willing to risk in case BRS returns to 6.95. If the trade never breaks above 8.13 this week, then the idea will expire.
Footnote: This is a table showing the maximum profit for past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering your personal exit of these positions. The trades outlined in red eventually hit their suggested stop prices, so you can see the importance of timing and harvesting profits along the way when you can, especially those that move above 10%. We will update this table when needed to bring data more up to date.
Targets are not absolute. Targets involve timing. Profits can and should be harvested along the way.
Risk to Reward ratio ideal is 1:3
Trades of the week that do not reach entry prices are not considered live and are expired at the end of the current week. (ORCL, HLF and JNPR)
TOW Rules: 20% Rule. If a performance is up 10% and gives back 20%, take the 8 and run. (Profit Save, Trailing Stop).
Stocks that gap up over the entry price are considered up to the discretion of the buyer as to the entry price (WETF)