Tuesday Morning

Gator's Chart of the Day: FIRE

I'm taking another look at Sourcefire, Inc.  The stock appears to have found support at the top of the February gap (42ish) and is now consolidating.  I still like their business very much and believe they have products that will be in great demand either from customers or as a takeover target.  They are due to report earnings on July 30th and I'm looking to have a position ahead of that report.  I probably will let some go but not all.

The Trade 
I'll look to take the 1st bite around 43.50 or a bounce from 42+ if the open is a dollar or more below Monday's close of 43.87.  My stop will be fairly tight as I will not want to hold if the stock falls into the gap.  It's possible that what I see as support may just be a pause in a move back to 35.  I would like to add fairly quickly and hold for a move back to the 20 day simple moving average or until earnings (whichever comes first.)