We traded KLIC from the zero number breakout at $7, up to the double top at $7.50. Why did we sale?
RSI went over bought, a new run at another high created the double top/lower high RSI, which is classic sale signal. Our trading rules dictate that we exit the shares. When do we buy again? Stock has bounced off a 38% retrace. While this pull back area can be a bottom, generally the time frame is not sufficent enough to warrant a favorable risk/reward entry. Stock is likely to move back to the 61% retrace level, of which we will re-examine at that time.
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