Harry Winston Diamond Corp - HWD - close 13.99 change +0.18 stop 13.55

Company Description:
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 Canada’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

Annotated Chart:

Entry on July xx
Earnings Date: 9/9/2010 (unconfirmed)
Average Daily Volume: 227,000
Listed on 7/22/10