Six Flags is still my largest stock holding. I sold off a lot at 34.8 but still kept a sizable portion. I like to review big winners.
First, I thought Six Flags is a quality company. It was not going anywhere. I think the COVID-19 panic pushed it to an absurdly cheap level. However, I like to wait for a breakout confirmation that I am right before going long. I do not want to sit in a stock that goes sideways for years. I also do not like to buy stocks that are going downward. A breakout to the upside is needed first. Just because I think something is cheap, does not mean it wont go cheaper and stay cheap for a long time.
On April 27th 2020, we had a breakout above 16.5. That was signal that it was time to go long. I placed my stop at 14.2. That was my risk. It did a retest of the April 27th base twice. Overall, it created a massive descending triangle (not something I like to trade). Within this descending triangle were a few H&S patterns. Out of that it broke out and never looked back.