A Setup at the Cuban Cigar Store

With this political news out today, any stock with exposure (or at least apparent exposure) to Cuba is obviously worth researching. CUBA would be one such ticker, an investment fund up over 42% today. It is tough to chase that type of action for a swing trade, especially in the face of news-driven moves. But for a day-trade you typically want to key off a shorter-term timeframe. On the 5-minute chart, below, if CUBA pulls back to the 20-period moving average (orange line), and find some buyers, it would represent a quality entry for a long day-trade position. Note how CUBA has not yet tested that 20-period moving average on the 5-minute chart today.