This short pick started to move in the right direction for us (lower) a couple of different times. It just couldn't stay pointed in the right direction. Today, it gapped higher following a couple of day's worth gains.
Normally I'd be inclined to cut bait at this point, especially with it being a short trade. In the case of Tessera though, I think this is one we can stick with a bit longer.
The peak at $27.54 was suspiciously in line with the early June ceiling. Perhaps there's heavy resistance there. Factoring in the gap and the gravestone doji (and the lack of volume) we're seeing now, I'm wondering if today's push is an exhaustion move.
If TSRA cracks the ceiling at $27.60, then I suggest getting out. Until then, I feel this short trade is worth holding.
Just as a reminder, the ticker here used to be 'MGEG', but a 5 for 1 stock split brought about a ticker change as well as pushed our cost basis down to 78 cents.
With a current price of $1.15, we've got about a 47% gain to protect. Though I suggested doing this last time, I want to reiterate that you need to scoot your trailing stop up for this long trade.
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