While doing my scans this afternoon Sienna Gold show up in my "In 70% of today's top trading range" scan. This is a simple scan that shows me stocks that are currently trading within the upper 70% of the day's trading range. I use this in the late afternoon for a potential setup for the following morning as a day trade. However when I looked at the chart, a nice Ascending Triangle is forming and the fact that is has held up over the last two carnage sessions we've seen in the markets and actually posting gains of 14.5% in those two same days is a good sign.

Today's volume is indicative of a breakout but it failed to close above $0.72 with at $0.71 close. I checked the trades for the day it and wasn't a large cross that sometimes occurs between houses, this was genuine volume throughout the day. With the increase in volatility in the markets these days (a comment from the EU's Energy Chief cause TSX to drop almost 200 points in 15 minutes, see story here), I am playing this one a little differently than normal...

As talked about this afternoon in chat with another member, I have a very short stop on it (intraday below $0.68 and I'm out) and it needs to be above $0.72 tomorrow morning after the morning caffeine rush period (9:30 to 10:15 am). If it is not above $0.72 at that time, I will sell. Normally this would have been a several day hold for me as the calculated move on an Ascending Triangle is the width of the triangle's opening. In this case the width is $0.16, so the target on a valid breakout should be $0.72 + $0.16 = $0.88, giving us gains of 22.2% if we played this as a swing trade. It may still turn out to be a swing trade, I am just being very careful with capital right now in these uncertain markets.

See chart here http://us1.campaign-archive2.com/?u=4d6d491aea8e01d93d8a1f390&id=c152e9389a#SGP

Cheers!