Fred's Inc. $FRED was a big mover on Monday (9/10). The move from $1.64 to $2.97 in one session was on the back of the announcement that Walgreens $WBA was essentially acquiring its pharmacies (patient prescription files and inventory, but not the actual stores). Freds Inc. would still run retail stores after the pharmacies are closed and still has 162 pharmacies across 600 stores (MarketWatch) This move is suppose to improve Fred's cash flow situation and the market appears to believe this. FRED Daily Chart (click to enlarge) Don't FOMO:- If you did not get in last week, and just saw this breakout, it can be exciting. Maybe you still see upside to $6.00 for a 2x gain, or even $4.00, which is still about 33% higher. - However, the risk is that price will pull back.- Trading involves taking risks, but maybe there are better entry points? - And if the market does not return FRED to these lower entry points, you will miss a nice run, but there will be other names to trade. Pullback/Support:- I think the first place we can look for support is $2.60-$2.65, which represents a previous resistance pivot. - Next would be the $2.35 area, which is a previous support/resistance pivot area. - Finally, a great entry point would be the $2.00 mark. - Even if we don't have dry powder at $2.00, we should understand the overall market can still be bullish if price pulls back to $2.00. - A break below $2.00 on the other hand suggests we might have a false bullish breakout. - Finally, we should also anticipate the RSI holding above 40. Therefore, if the RSI approaches 40, we can start anticipating support, assuming the overall market has indeed turned bullish with upside to at least $4.00.