LEJU had a nice gain in power hour on Friday due to a large volume inflow. RSX and %R indicate that LEJU has enough gas in the tank for another climb. I expect a pullback due to some profit taking on Monday, and then a quick breakout to the top of the channel, which is typical for this ticker. There are a couple of ways I could play this:
(1) Conservative: wait for pullback to bottom out, then buy on the way back up between 1.63-1.70 to confirm uptrend. Take profit at 2.01, which marks the .236 fib level and (roughly) the mid-line of the regression trend channel. Set a tight stop loss at 1.60. This would give approximately a 3-1 reward/risk ratio and possible return of approximately 18.2%.
(2) Swing for the fence: to play more aggressively, try to buy at or below 1.63, stop-loss around 1.45, and take profit at or above 2.35, which is at recent high and consistent with top of regression trend channel. 4-1 ratio with a possible return of 44.17%.
(1) Conservative: wait for pullback to bottom out, then buy on the way back up between 1.63-1.70 to confirm uptrend. Take profit at 2.01, which marks the .236 fib level and (roughly) the mid-line of the regression trend channel. Set a tight stop loss at 1.60. This would give approximately a 3-1 reward/risk ratio and possible return of approximately 18.2%.
(2) Swing for the fence: to play more aggressively, try to buy at or below 1.63, stop-loss around 1.45, and take profit at or above 2.35, which is at recent high and consistent with top of regression trend channel. 4-1 ratio with a possible return of 44.17%.