Halfords is on an all time low after breaking the 2012 low and now there is no continuous support in the downward trend. The market before continuing the trend or to reverse there is a likelihood of forming a base through consolidation, where we can expect market to hit short term support and resistance levels over and over again.
Technicals - Price just retraced at 38.2% FIB levels at the least we can expect the market to return to 100% levels before the price either breaks out or reverses.
Fundamental - Revenue of the stock is stalling. Op. Margin and ROE is on a downward trend though all the broker consensus is to "outperform"
Caution - there are two major news event to keep in mind.
1. Brexit on the Oct 31st
2. Earnings release on Nov 7th.
Trading Plan
1. Enter the trade at open with a stop loss above the previous resistance levels and target at previous support level.
2. Let the trade expire prior to the earnings release. i.e., close out the position prior to the earnings release on Nov 7th.
3. Keep an eye on volatility on 31st October due to Brexit. If the volatility is too high and unable to be in the trade psychologically then to get out.
Good luck!! Let the markets be with you
Technicals - Price just retraced at 38.2% FIB levels at the least we can expect the market to return to 100% levels before the price either breaks out or reverses.
Fundamental - Revenue of the stock is stalling. Op. Margin and ROE is on a downward trend though all the broker consensus is to "outperform"
Caution - there are two major news event to keep in mind.
1. Brexit on the Oct 31st
2. Earnings release on Nov 7th.
Trading Plan
1. Enter the trade at open with a stop loss above the previous resistance levels and target at previous support level.
2. Let the trade expire prior to the earnings release. i.e., close out the position prior to the earnings release on Nov 7th.
3. Keep an eye on volatility on 31st October due to Brexit. If the volatility is too high and unable to be in the trade psychologically then to get out.
Good luck!! Let the markets be with you
Trade active:
Trailed the stop loss to breakeven and extended the target to fib 1.272 levels as there is strong momentum. if there is pause and no breakout out at my first target levels then i will close the trade.
Trade closed: target reached:
Target reached including the mental one, had to close the trade even though it is on a downward trend as there is a news update from halfords coming out tomorrow. Major rule not to trade on news events