I entered this stock on the break of recent resistance of $1.2 (green up arrow) and have my inital stop at just below $1. The stock has moved up nicely since and I am thinking of moving my stop to the 6 day low, which is ~$1.3.
From a EW perspective, it seems wave 3 or C is underway, which has a target of at least $1.8. However, if the current leg is wave 3, it is possible that wave 3-i has just completed, and wave 3-ii could retrace into the Fib levels which will retest the breakout support at $1.2. This is lower than my current stop.
The options I see are:
A. Put stop at $1.3. If it is hit, too bad, and re-enter at $1.2 if it gets down there.
B. Place stop at $1.1 instead, which is below the typical retracement zone and the support line.
How would you manage this trade?