Trade Idea -Sierra Cables - Had given 18 to 20.5% returns twice in 2015

Price of Sierra Cables took a hit during 2014. But on the 2nd of January this year, the stock broke out of 3.90 to 4.00, pushing it upto 5.00. Thereafter the counter retraced to 3.90 and 4.00, which acted as a support. During this time the RSI also retraced to 24 points. From there onwards it rallied upto 4.70, giving a return of 18%. Once again the stock retraced back to the support of 3.90 and 4.00, AND rallied to 4.80 during July to August '15. It retraced back again, and now taking support at that magical figures of 3.90 and 4.00, with the RSI falling once again to around 25 points. I take this as a trade idea, and it is as follows:
Enter between 3.90 and 4.00.
Exit between 4.70 and 4.80.
Stop at 3.60.
Target return is 18 to 20.5%
Loss if stopped is 9.60%.
It is critical to have a strong stop when trading.