Hi Traders,
Multiple Entry Points Available On Microsoft (MSFT), It's evident that we have a double top which could be a great setup to take. However, we have a few entry points which may be confusing for new traders. So let us break it down and see the different entry points and what they could entail.
1stly price is currently trading at 252.67 which is also a retest of the back of my TL which I have drawn from the lows of 242.00. Now price can easily reject this level and then continue to tank to the downside.
I won't be interested in this short as it would give me a terrible risk-to-reward ratio which I am not a fan of.
The next potential entry point would be at 255.38 as this is the retest of the neckline of the double top. Now this entry price has a good risk-to-reward ratio and It is a decent setup for price to give the continuation to the downside. I will not be entering blindly at this point because price has the potential of moving higher to around 262. This is an untested resistance that may want to get tested.
My method of entry will be for price to first reject 255.38 and start showing signs of selling before entering.
This will require patience.
Renaldo Philander
Multiple Entry Points Available On Microsoft (MSFT), It's evident that we have a double top which could be a great setup to take. However, we have a few entry points which may be confusing for new traders. So let us break it down and see the different entry points and what they could entail.
1stly price is currently trading at 252.67 which is also a retest of the back of my TL which I have drawn from the lows of 242.00. Now price can easily reject this level and then continue to tank to the downside.
I won't be interested in this short as it would give me a terrible risk-to-reward ratio which I am not a fan of.
The next potential entry point would be at 255.38 as this is the retest of the neckline of the double top. Now this entry price has a good risk-to-reward ratio and It is a decent setup for price to give the continuation to the downside. I will not be entering blindly at this point because price has the potential of moving higher to around 262. This is an untested resistance that may want to get tested.
My method of entry will be for price to first reject 255.38 and start showing signs of selling before entering.
This will require patience.
Renaldo Philander