Shares of Calamos Asset Management (CLMS) showed the mark of a bullish reversal in December, especially after the Dec. 16 announcement that it would be acquired by an entity formed by the founder. You can read more about the details here:Calamos Asset Management (CLMS) Agrees to Take Private Deal with Founder and CEO at $8.25/Share (Dec. 19)Calamos Asset Management (CLMS) to Be Acquired for $8.25/Share by founder John Calamos And CEO John Koudounis (Jan. 11)Let's take a look at the daily chart:CLMS Daily Chart 1/12(click to enlarge)10.00 in Sight:- CLMS has been bearish since the end of 2014. - However, it found support at 6.00 in 2016. - Bulls seem to have taken over in the latter part of 2016, pushing above the cluster of 200-, 100-, and 50-day simple moving averages (SMAs). - Also the RSI pushed above 70, even tagged 80. This is a sign that strong bullish momentum is developing. - I would say that the current bullish outlook should be tempered because of the prevailing bearish trend.- Still, we can look at 9.50 and then 10.00 as potential targets.- For now, we should cap the bullish outlook to 10.00, a psychological level and a previous resistance area that might coincide with a falling resistance.My Ideal Case:- Now, for me, an ideal case would be a dip to 7.50. - Given the potential bullish outlook, 7.50 should hold.- A break below 6.70 would likely be part of a bearish continuation scenario.- This is a 10.67% risk.- A target of 9.50 yields a potential gain of 26.67%.- At 10.00, the potential gain is 33.33%. - The reward to risk at 7.50 is therefore strong. More Realistic Scenario:- Now, with a deal pegged at $8.25, price might not retreat to 7.50, but might test the 8.00 handle.- If we get it at $8.00, the reward to risk becomes barely satisfactory. - This is a scenario where we can consider scaling in from a small position at $8.00 to a larger position if price retreats towards $7.50.