SMG - Scotts Miracle-gro Buy Step Up

After the frenzied trading due to the earning release last week, SMG is right back to where it was.  It found support around $76.50.  On May 3rd the low trade was $76.60.  On August 1st, the day of the release, the closing price was $76.66.  This is a good example of why it is important to pay attention to where recent lows and recent highs were.  I spoke about this in the recent Weedly Report.  

If it continues to rally I would look for short-term resistance around $79.50 because that is where the low was in mid-June and the high / close last Tuesday.  If this levels breaks to the upside I would consider a buy-stop just above it with my long-term target around $87.50.  This is where the three prior tops were in May, June, and July.

So here is the trading idea.   Buy-stop at $81 with a sell-stop after that at $79 and a sell target at $86.