Stock of the Day / CGC Long

Description

⋅ Oct 13, 2020 1:18 PM

Today we have a long setup to share. As we are used to we will start by sharing the Macro view and then we will explain the 4hs chart

a) Weekly Chart: The price bounced from a clear Support / Resistance level tested from both sides

b) On the 4HS chart we can see a broken descending trendline + a clear corrective structure supported on the weekly level

c) The corrective structure is an ABC pattern which is considered a continuation structure

d) We have set our Orders as you can see on the chart. We will move our stop loss to break-even when the price reaches the yellow horizontal line

e) On this setup we will risk 1% of our capital and we expect to win 1.8%

f) We will cancel the setup IF the price goes below C

g) Remember: Trade safe, protect your capital, and always understand what you are doing!

Comments

ProjectSyndicate

⋅ Oct 13, 2020 1:59 PM

great technical setup and overview. appreciate it!

psbassin

⋅ Oct 14, 2020 12:27 PM

Thanks - so are you saying it wont break the upper descending trendline and stop at $32? Could it break the golden pocket at $37?

ThinkingAntsOk

⋅ Oct 14, 2020 1:02 PM

@psbassin, Hi! Of course the trendline can be broken. But since our position is already in good profit prior to that area, we decided not to mantain the exposure at that moment. If the trendline is broken, we will then look for another bullish setup.

psbassin

⋅ Oct 17, 2020 10:06 PM

@ThinkingAntsOk, thanks!