PLL "looks like" it has the potential to be a disaster but if it gets stopped below the low of the first five minutes today it will result in 2/3 of the position being stopped with a loss of $4.65/ share.
If you take the results of - 4.65, -4.65 and =0.65 it would result in a loss of 865 on the three pieces. We divide 865 by 3 and get an average loss of $2.88/share.
When we entered the stock we did so with an initial stop at 6880 which if hit would have resulted in a loss of $3.45/ share, that would have been 0.5R.
If we hadn't sold the first third profitably and we got stopped out with a loss of $4.65 on the entire position it would have been a 0.9R loss.
If we get stopped at 6760 the loss of $2.88/ share would be a loss of just 0.4R. See how important taking that first third off is?
As it stands, it looks like that stop may hold. Never panic and sell a gap lower, this is a constant rule, not once in a while.
