HCI Group, Inc.
Long

HCI Breakout Setup

160
HCI is setting up in a textbook breakout pattern. Big sales growth last few quarters and the stock is up accordingly.

Relative strength is in the 95th percentile, and the stock has held up well even with the recent selloff.

Shares are consolidating, and contractions have shrank from 15% down to 5%. At the same time, volume is contracting - a sign that sellers are sparse, even under the pressure of a mild market selloff.

I have a buy stop set at 115.45. If triggered my stop will be at 109.65 for a risk of 5.0% on the trade.

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