[isatrader]

ASTX: I know its been quite sometime since ASTX broke out. It also pulled back. I got in at 5.20. I think it still has room to run.

Hi anupam384,

I've attached the weekly and daily charts for ASTX and some long term point and figure charts, and have marked the Stage 2A breakout point, which imo occurred in June 2012 as it broke out and the 30 week MA also turned higher, which it didn't in January that year when the price spiked sharply higher, and hence why that wasn't a Stage 2 move, and would have still be considered Stage 1 at the time.

ASTX is currently in a fairly strong Stage 2 phase and has outperformed the S&P 500 since it broke out into Stage 2A last year. So you're entry at 5.20 would be considered a pullback entry within Stage 2, and normally would be used for additional buying, as ideally for the investor method the initial entry should be half at the Stage 2A breakout level (June 2012) and half on the first significant pullback and stabilisation (late November 2012) - which in ASTX's case would have got you in around the 2 to 3 range.

Stop loss positioning for the investor method should go below the last significant weekly swing low and the 30 week MA. So for this that would be below 3.90 - however, if you'd actually entered at the Stage 2A breakout point and had been raising your stop as suggested in the book it would be a bit lower as you don't raise you stop until the price gets near to the previous swing high, which it hasn't reached yet.

So I just wanted to make that clear for any new members reading this and say good luck to anupam384 with the trade.