Thursday, August 13, 2009 (STMP) originally caught my eye on a chart scan. I was looking for ascending triangle patterns, which are generally bullish and indicate accumulation. The pattern is characterized by an ascending lower trendline and a flat upper trendline. The usual way to play the ascending triangle is to buy on the breakout above the upper trendline. One can also get in at the bottom (the lower TL) and ride the stock to the upper TL (sometimes through multiple cycles before the breakout occurs). It is easy to pick good stops (close to the trendline).

Back to the stock at hand: STMP has the favorable pattern going, but also attractive fundamentals. It is profitable and has over $4/share cash. I caught this one as it neared the lower trendline and if things go right, I'll hang on until it tops out at $10.

STMP Trading History:
August 7th, bought STMP for $8.70.

Current position:
Long STMP ($8.70).

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