A first long leg show an gain of 83% A recent consolidation with higher lows and volatility contraction (VCP).
Entry 1: 39 Entry 2: 41 Entry 3: on breakout: 42 Stop loss: 37.86 (1 ATR = 0.5% of the capital)
The idea is to build a position step/step, manage the risk of portfolio, the stop loss shall be raised up after Entry 2, Entry 3, to keep a risk around 0.5% of the capital equal to 1 Average True range (ATR)
Conclusion: looks correct opportunity, to be followed up for a possible trade to build up.