Two things disturb me about this setup:
1) that's an awfully wide spread (~$6.25) on the stop loss, and
2) that's a disastrously distant (~$12.50) stop loss.
That said, the wave structure indicates this is a corrective wave starting from 07-21 high to 07-23 low to the current high from PM capped by resistance at $40.50 for 07-21 afternoon trading.
This is more likely to make a similar $10 drop to ~$30.
Smarter_Trades
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@TranceaddicT66 I believe that you should have your own stop loss and not follow exactly what others are doing. That is why the stop loss is exaggerated.
1) that's an awfully wide spread (~$6.25) on the stop loss, and
2) that's a disastrously distant (~$12.50) stop loss.
That said, the wave structure indicates this is a corrective wave starting from 07-21 high to 07-23 low to the current high from PM capped by resistance at $40.50 for 07-21 afternoon trading.
This is more likely to make a similar $10 drop to ~$30.