This is an update to the Preemptive Break Out Idea posted earlier this month
1) Price has traded to as low as $82.48 and has now rebounded to 86.90s now. Price did not trigger the $82 Stop Loss, therefore Scenario C is now Ruled out. Also it is a sign of a bear trap where support is broken slightly and reversed strongly on the bullish side. Step 1 to enter long above $84 should have been executed by now.
2) Right now price is trading around $86.90 - $87.00, which is around the resistance zone of the sideways consolidation. Therefore we can execute Step 2 of the plan and close 50% of the long position and book profit. At the same time we can place Stop Loss at break even level for the remaining 50%.
This will effectively minimize the risk of this trade and creates a long position with very little chance of losing.
3) Only time will tell whether the price will act out Scenario A or Scenario B. It might take 1 or 2 months to see the conclusion of this plan, therefore patience is advised for the remaining 50%.
In the mean time here's wishing you a Merry Christmas and a very profitable 2015 ahead!
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Price action indicates that Breakout maybe imminent.
An update on this idea has been posted:
tradingview.com/v/lvx6LZcA/