I shorted AXP back in July; Had it for several days and made decent profit (never mind the fact that the trade could yield much more if I had not closed it too soon). In any case, I think the short cycle is about to end and the price is about to start climbing like the old days.
After scratching its legs and reaching all-time high in July, the price has moved down day after day. Due to fast sell-offs and recoveries, minor highs and minor lows are apparent in the price movement. This has formed a broadening wedge , descending. The pattern is more likely to be a reversal for the short-term trend. It acts as a consolidation phase for the long-term trend. Noteworthy to mention, volume increases as the pattern matures. AV is about 3.2 million in the beginning of the formation and for now, it has increased to 3.7 million. In the meantime, bullish momentum is entering into the market; both MACD and AO are confirming this. The 61.8 Fibonacci level or $114.00 would be an ideal entry, but I do not think the price would reach this level before moving up (I wish to be wrong on this just to increase my position size).
This morning, I opened some long positions because the ~116 support level hold steady and I will possibly scale in if the situation arose...
Cheers!
After scratching its legs and reaching all-time high in July, the price has moved down day after day. Due to fast sell-offs and recoveries, minor highs and minor lows are apparent in the price movement. This has formed a broadening wedge , descending. The pattern is more likely to be a reversal for the short-term trend. It acts as a consolidation phase for the long-term trend. Noteworthy to mention, volume increases as the pattern matures. AV is about 3.2 million in the beginning of the formation and for now, it has increased to 3.7 million. In the meantime, bullish momentum is entering into the market; both MACD and AO are confirming this. The 61.8 Fibonacci level or $114.00 would be an ideal entry, but I do not think the price would reach this level before moving up (I wish to be wrong on this just to increase my position size).
This morning, I opened some long positions because the ~116 support level hold steady and I will possibly scale in if the situation arose...
Cheers!
Trade active
Comment:
This position has been active since the early September. Regardless of my view on the future direction of AXP, I think it is time to cut it. Tightening the stop; stop @ 115.40 as of now. Currently down form 119.05 to 117.42.
Comment:
It is up and I am in profit as of now. It is struggling to pass ~121.00 resistance level. Bullish momentum is decreasing and I am a bit concerned. As of now, stop @ 115.40 and up from 119.05 to 120.89. We'll find out what happens...
Trade closed manually:
After testing the 121 resistance, it failed to close above it and pick up a bullish momentum. Even though I am in profit by a tiny bit, it was not worth the time. Cutting it after 2 months...
Entry @ 119.05
Exit @ 119.79
Profit 0.62%
After testing the 121 resistance, it failed to close above it and pick up a bullish momentum. Even though I am in profit by a tiny bit, it was not worth the time. Cutting it after 2 months...
Entry @ 119.05
Exit @ 119.79
Profit 0.62%
