BBAR: Argentine Momentum – Bull Flag Breakout

The Setup: Banco BBVA Argentina is one of the leading private financial institutions in the country. Like its peers (BMA, GGAL), it is riding the wave of optimism surrounding Argentina's economic reforms. However, BBAR often shows distinct relative strength during sector-wide moves.

Technically, after a strong impulse leg up, the stock has spent the last few weeks consolidating in a tight Bull Flag pattern. This cooling-off period is healthy, allowing moving averages to catch up. We are now watching for a breakout above the upper trendline to signal the start of the next leg higher.

Reasoning:

• Strong Industry/Sector (Argentine Financials)
• Bull Flag Pattern (Classic continuation setup)
• Consolidation above Key Moving Averages
• Sector Rotation: Moving in sympathy with BMA/GGAL

If Labelled a Swing trade(2-6 Week Holds)

• Entry: Full position on breakout (See Chart)
• Profit Taking: Sell 1/3 at Goal 1
• Final Exit: Remainder at Goal 2

If labelled a long term trade (3-12 Month Holds)

• Entry: Full position on breakout (See Chart)
• Profit Taking: Sell 1/4 to 1/5 at Goal 1
• Exit Signal: Close below 20-day EMA (your trend guide) or 50EMA
• Why: Strong moves are hard to time at the top, but the 20EMA acts as a reliable trend filter

Note:

• Remember: Every long-term investment alert can also be played as a swing trade.
• I normally use half the risk that I show here, this is because I am okay re-entering if it fails and it gives a better R/R ratio