NEW BULLISH Plays
Harry Winston Diamond Corp - HWD - close 13.99 change +0.18 stop 13.55
Harry Winston Diamond Corporation is a specialist diamond company with assets in the mining and retail segments of the diamond industry. The Company supplies rough diamonds to the global market from production received from its 40% ownership interest in the Diavik Diamond Mine (the Diavik Diamond Mine) located at Lac de Gras in Canadaâ€™s Northwest Territories. The Company also owns Harry Winston, Inc. (HWI), the fine jewelry and watch retailer operating under the Harry Winston brand.
Target(s): 14.55, 15.00, 15.80
Key Support/Resistance Areas: 14.57, 14.08
Time Frame: 1 to 2 weeks
Why We Like It:
This is an ascending triangle play that has a nice volume pattern, i.e. the pullbacks are on lighter volume than advancing days. I suggest we play a break out and use a trigger of $14.11. If it breaks out and there is broader market strength HWD should easily trade to $14.55 (+3.1% from the break out level). Beyond that there is clear air up to $15.00 and possible $16.00. Pull up a weekly chart and check it out. We'll keep a tight leash with a stop at $13.55. NOTE: This is an aggressive play with average volume of 224,000 shares. Please use proper position size to limit risk.
Suggested Position: Long HWD stock if it trades to $14.11
Options Traders: N/A
Entry on July xx
Earnings Date: 9/9/2010 (unconfirmed)
Average Daily Volume: 227,000
Listed on 7/22/10