American Express broke out of its trending channel yesterday on very good volume. With consumer spending increasing due to the easing of lockdowns globally, AMEX should now push higher providing the markets continue in their upward trend.
We are fully expecting a breakout to $111-$112 before a pullback.
This is providing the US / China tensions do not cause a short term pullback.
@virtualtechie11, Currently backtesting and looks to have held on the 1hr. Should see confirmation tomorrow. If the backtest confirms then this could be ripe for picking..as to speak
virtualtechie11
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@BH42, what do you mean backtesting? is this a technical trading term? sorry if it is, never heard of it..
BH42
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@virtualtechie11, Sorry you may know it as a retest, i just call it a backtest
virtualtechie11
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@BH42, got it mate, thanks, in it to win it ! one question you may or may not know, have you used leveraged ETFs ? like 3x short or 2x short FTSE or DAX and have you / can you (rather should you) hold them over-night? there is a lot on the net saying, not advisable but just going through toni turners book and she says 1-5 days hold ok.
BH42
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@virtualtechie11, Sorry for late reply. Yes I have used previously. Usually closed out before the end of a trading session personally. Using leverage is fine but if you are going to keep overnight then I would risk more than 1-2% of portfolio at a time as one big market crash overnight and you could wake up to a wipe out.
Personally I would only advise using leverage if you know exactly what you are doing - there's a reason that 85% of retail investors who use leverage lose money .... hope that helps.
virtualtechie11
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@BH42, thanks bud, not sure how it would wipe you out, if the market only crashes 5% for example, and its 2x, i would have thought you would loose 10% of your invested amount... i can understand in CFDs, but here we are not using CFDs are we?
BH42
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@virtualtechie11, All fine, as long as the market doesn't gap and you stop gets missed. 95% of the time you'll be fine though
virtualtechie11
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@BH42, nicely done, up after the retest,
before you enter do you also make sure that the general trend is up or moving up? as it would be a hard for share price to go up in a falling market
BH42
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@virtualtechie11, Yes, always. Backing a stock to rise in a downtrend before it falls again is like catching knives. Could go well or could be very bad. At least if it's trending you can hold on during a bad few days and it will revert to it's trend after.