RFIL - New 55 Days High with 200%+ Volume

Jan 15, 2019

Below is a study of how to play stocks that reached New 55 Days High.

RFIL - RF INDUSTRIES, Inc. 
Last Jan. 24, 2018 jumped from 2.60 to 3.48 hitting New 55 Days High with volume surpassing the 200% level. If you notice the Breakout occurred in the following successions.

1. The Price broke out above SMA(200) last May 26, 2017 which failed but 18 days later broke out again above that SMA(200) and followed with a breakout of SMA(30) and SMA(50) above SMA(200). See Fig. 1
2. H1 Breakout. This is a breakout of the previous high after breaking the 200SMA.
3. H2 Breakout. The New high of No.2 was broken on the upside with 
4. New 55 Days High and a volume above 200% level.
5. LH going higher. The Lower Highs are trending higher just touching the SMA(30) but never below the low of the Jan. 24, 2018 breakout candle. Your ENTRY could be the second touch on the SMA(30).
6. Dividend was announced on March 9, 2018. This was a very strong catalyst, although the chart showed a red bearish candle breaking down the SMA(30) with 41K of volume a little above the average 30K volume. Ordinary investors may get scared on this chart outlook, but this is what the Market maker and Hedge Fund Mangers are looking for so they can position cheaply with the stock. See Fig. 2
7. Another Catalyst on March 13, 2018 happened. A news broke out that its sales jumped by 55%. RFIL gapped-up with a huge jump from 3.50 to a high of 5.48 a day after when that news was released. This gap is associated with another New 55 Days High. Here you could have added your position right at the neckline of the Gap up candle. That would be additional position. See Fig. 3
8. Exit on R2 high. R2 is the measure equivalent to R1. R1 is taken from the previous high before it gapped up on June 11, 2018. It is measured from previous day's high to the high of the gap-up.

Had you entered at $3.00 and exited at $12.00 you could have made 400% of your trade.

FIG. 1 RFIL breaking out of SMA(200) + New 55 Days High

FIG. 2 RFIL with the Catalyst (Dividend Announcement + High Sales)

FIG. 3 Another New 55 days High after Dividend and High sales News.

FIG. 4 RFIL making 400% gain from $3.00 to $12.00

Study this strategy for this is a very potent and rewarding strategy.