Here is your trading plan for staying long Zagg (ZAGG). (July 02, 2014)

by DAN ZAGG 
Let’s look at Zagg ( NASDAQ:ZAGG ) again. You can see the volume is tapering off a bit; it’s still almost double volume here on the fourth day of this move. So what do you do here, do you go ahead and take profits? I don’t know, I don’t think you really can. You can see the kind of move; I would say it’s a ski jump here, which is a really complicated pattern; the thrill of victory or the agony of defeat.

I think this move has legs, but here’s what I would do, because look at this; in three trading days the stocks up 20 percent, that kind of begs for some kind of a pullback. The distance between these successive highs here, like this high and that high, 12 percent; this high and this high, 5.5 percent, this high, I’m using the intraday highs, this high is basically close to flat. My point is, the power of the bulls verses the bears is getting a little more even.

So what I would suggest doing is this, use today’s intraday low, 5.52, use that as your reference for a stop. If you’re long the stock, 5.81, fine, as long as the stock remains above today’s intraday low of 5.52, we’ll call it 5.50, as long as it remains above 5.50 then you’re fine staying long. But if it starts dropping below there then that’s a change in character, because the last three days have had higher intraday lows and higher intraday highs; so if that pattern changes then so should you’re position.

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