We have identified a zone of support and resistance on New Egg (NEGG), an e-commerce platform we visit when building computers. According to Nick Shawn, a popular trader on YouTube, support and resistance zones are merely a location that is convenient for setting up a risk vs reward structure. Since there is no guarantee. Price could go either way. Zones help him decide if, when, or where to place a trade. It is only a strategic place to make decisions about how to manage a trade in advance. How you attend to the trade is up to you, whether it's buy & hold, day trading, or swing. Nobody knows the future. He is not a financial advisor. We are not financial advisors. You will probably lose money. Managing risk is how traders make profit targets and avoid losing too much.
We are not recommending anything! The risk/reward structure is determined in advance, before placing a trade, using the long or short position tool. You decide how much, if anything, to risk. And apply your own back-tested strategy for managing outcomes.
That said, we have identified this zone, also called an order block zone. And we will be using an order block management strategy for this. Or possibly look for a double bottom. We have a long bias on New Egg from using the website to price components. The price closed 5% above the all-time low of $1. Which we think is a key value for penny stocks. And there has been some positive volume in the past few months. So maybe more of that will arrive. But e-commerce is a tough business. We could all just suddenly stop shopping online and take up local manufacturing and goat herding instead, because of the high demand for local, off-grid products. And the universe could start collapsing tomorrow into a giant egg because of a new and undiscovered property of physics.
We are not recommending anything! The risk/reward structure is determined in advance, before placing a trade, using the long or short position tool. You decide how much, if anything, to risk. And apply your own back-tested strategy for managing outcomes.
That said, we have identified this zone, also called an order block zone. And we will be using an order block management strategy for this. Or possibly look for a double bottom. We have a long bias on New Egg from using the website to price components. The price closed 5% above the all-time low of $1. Which we think is a key value for penny stocks. And there has been some positive volume in the past few months. So maybe more of that will arrive. But e-commerce is a tough business. We could all just suddenly stop shopping online and take up local manufacturing and goat herding instead, because of the high demand for local, off-grid products. And the universe could start collapsing tomorrow into a giant egg because of a new and undiscovered property of physics.