Elpidaldo

DISCA: LOW RISK BOUNCE SWING PLAY

Long
NASDAQ:DISCA   Discovery, Inc. - Series A

Disca has been dropping since March and has now reached an Ichimoku support on the weekly chart.
My support is based on the flat side of the cloud.

Quiet good risk/reward play. One could buy at the current price level with a stop between 24.90 and 23.5 depending on your risk tolerance and sizing.

My target is between 32 and 35 as you can see on the chart. If we reach these target we will reassess and see whether we have a sustained trend reversal.

Trade safe!

More on Ichimoku (by Investopedia):
The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.

Key takeaways:
The Ichimoku Cloud is composed of five lines or calculations, two of which comprise a cloud where the difference between the two lines is shaded in.
The lines include a nine-period average, a 26-period average, an average of those two averages, a 52-period average, and a lagging closing price line.
The cloud is a key part of the indicator. When the price is below the cloud, the trend is down. When the price is above the cloud, the trend is up.
The above trend signals are strengthened if the cloud is moving in the same direction as the price. For example, during an uptrend, the top of the cloud is moving up, or during a downtrend, the bottom of the cloud is moving down.
Trade active: Still in the trade...
Trade active: Congrats if you're still in the trade!
Comment: it went a bit below my stop loss zone but if you managed to hold or add through the storm you are getting rewarded now, congrats!