Trade Idea
Signal: Consider a potential buy as the stock is breaking out from resistance levels.
Direction: long
Entry: Look to enter if the stock is trading above 375. A safer entry above 380.
Exit Targets:
1st Target: 400
2nd Target: 430
Stop Loss: Set a stop loss just below the lowest point the stock reaches during the day.
Time Frame: Plan for 2 months for the trade to unfold.
Risk Management: Keep your position size manageable to control risk, and stick to the stop loss you've set.
Explanation
Signal: the stock's price has just bounced from lower level with good buying that was a barrier.
Reasoning: This stock, has shown a tendency to follow this pattern. This historical trend adds credibility to the trading idea.
Direction: The strategy recommends taking a long position, expecting the price to keep rising after the retest.
Trade Rules: If the stock's price is trading above 375, or maybe even a bit higher at 380, that could be a good time for buying. Set your sights on reaching 400 as the initial goal, followed by 430.
Time Frame: Give this strategy about 2 months to see how things pan out.
Risk Management: To stay safe, make sure your investment amount (position size) is under control. Don't forget about the stop loss; it's like a safety net for your investment.
Remember, trading involves some risks, but with a well-thought-out strategy and careful moves, you increase your chances of making the right moves at the right times!
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