It depends on your trading time frame. For a long-term investor, it would be unwise to consider potential short-term resistance levels. Say, one had bought last October or earlier and was sitting on a 4-bagger or thereabouts, a tick up or down wouldn't make much of a difference.
However, that doesn't apply in my case. While I hold some long-term, dividend-paying stocks in my yield portfolio, SAS is definitely not in that league. Thanks to recent high volatility, I treat it as a swinger, trading it between support and resistance off daily charts - sometimes even shorter ticks. If a breakout explodes too fast, there comes a stage when the risk of a rebound outweighs the chance of further advances and I take at least some profit. If, like today, the Market (the chart) proves me wrong, I get back on board. Missing a tick or two on the way to the next resistance level is far less disturbing than overstaying and running into the need to stop a loss.
PS: I have actually closed today's trade completely, final sale at 16.5c. Tomorrow will be a new month, day, and chart-based trading plan.
SAS Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
