Bearish potential detected for NXG

Aug 17

Entry conditions:
(i) lower share price for NXG along with swing of DMI indicator towards bearishness and RSI downwards, and
(ii) observing market reaction around the share price of $10.21 (open of 4th August).

Stop loss for the trade, depending on risk tolerance, would be:
(i) above the recent swing high of $10.92 of 7th August, or
(ii) above the potential prior resistance of $11.18 from the open of 28th July, or
(iii) above the potential prior resistance of $11.66 from the open of 28th October 2024.

Aug 24

Trade active

UPDATE (week ending 22-Aug): Trade activated on Wednesday 20th August with decent market reaction around the share price of $10.21 in the direction of the trade. Increased price range in the stock over the past trading week has created a potential outside week which provides the opportunity to improve protective stops to a level just above the range of the past week's trading range (i.e.: just above $10.86). Share price tested both 10 and 30 day MA's over the past trading week and ended up closing below both 10 and 30 day MA's at the end of the trading week.

Aug 30

Trade closed: stop reached

UPDATE (week ending 29-Aug): Depending on level of risk tolerance, stops were triggered throughout the trading week - Monday for the first level, Wednesday for the second level and Friday for the third level - with volume noted to be picking up by Tuesday onwards for the outside week formation working against the trade. Of course, losses would've been minimised from the utilisation of the improved stop loss in accordance with the charting pattern of the outside week formation noted in last week's comment - doesn't remove the sting of a losing trade, but it certainly assists (not every trade will work out, but risk management is certainly key).