This is an aggressive swing trade that I will be placing early Monday unless the markets look extremely bearish. I am calling this an aggressive trade because of the obvious roadblocks that it will need to overcome in order to reach the target. Also because If I am triggered into the trade and it moves in my favor I will be quickly moving my stop loss up to mitigate my risk as soon as possible just in case one of the roadblocks does, in fact, prove to be insurmountable.
Here are the things I like about this trade
1) The price is bouncing off of the 200 SMA
2) The last 3 candles have formed a morning star reversal pattern
Here are the potential roadblocks facing this trade
1) The price must break through a fairly strong looking resistance in order to reach the target.
2) The 100 SMA is dropping and will most likely pose a strong resistance as it has in the past.
Here is my set up
1) My Bullish stop limit - place the buy stop at $16.75 and the limit at $16.78
2) My stop loss will be placed at $15.55 and my 2R profit target will be at $19.15
Here are the things I like about this trade
1) The price is bouncing off of the 200 SMA
2) The last 3 candles have formed a morning star reversal pattern
Here are the potential roadblocks facing this trade
1) The price must break through a fairly strong looking resistance in order to reach the target.
2) The 100 SMA is dropping and will most likely pose a strong resistance as it has in the past.
Here is my set up
1) My Bullish stop limit - place the buy stop at $16.75 and the limit at $16.78
2) My stop loss will be placed at $15.55 and my 2R profit target will be at $19.15