I added ASTC for a play off of support at $3.07ish, while this would have been a great entry two weeks ago, I missed it while on vacation. However, looking at the chart again, I can see an ascending triangle forming and today is hanging out right around there. Actually, as I am typing this I just got filled for 1,000 shares at $3.21... I originally entered in for $3.20, but there was a lot of bidders on L2, so I tick it up by a penny. Here is daily chart showing what I determine to be the support and resistance:
So, we have the $3.07 area as our stop area, which matches up with the 50-ma as well. This is 4.4% downside. The resistance and top of the ascending triangle is at $3.65 for 13.7% upside, or a 3-to-1 risk to reward. I've also increased my position size on this trade in attempt to dampen the commission's affect.
Now here is the hourly chart showing the bottom of the ascending triangle going to work. This is an uptrending stock and ascending triangle is supposed to be a continuation pattern, so that is what I am hoping for. I am not exactly sure if this is an ascending triangle, as the previous resistance line of $3.07 wasn't very strong, so I am just hoping for this pattern to continue, or at least to make it up to the $3.60ish area and I'll re-evaluate taking profits there.
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