PPC has been showing abnormally high volumes since May 2020 as it was forming a bottom. Now after finalising the accumulation volume has increased even more pushing price higher and I am expecting a markup to start possibly reaching as high as R5 before reaching the next important decision point.
@JarydK, Hi, This post was given as an overall view of the stock indicating the high volume interest started in 2020. You should trade this according to your trading plan. There are two main categories of trading strategies you can follow:- the one is to trade the stock as a longer-term investment campaign by buying the stock outright and not using some trading instrument. - The other would be to treat this as a swing trade using your preferred trading instrument. The stop loss would differ depending on the entry strategy you follow. For example, if you look at the updated daily chart given above we see we are in a smaller TR (given as green lines). This should follow the normal Wyckoff patter and we should be looking for a last point of supply (LPS) or spring to occur. It is possible that this could take us back to R1 or even slightly below. I would then be looking for a reversal bar to invest in the stock outright to buy and hold. My soft stop loss (where I still decide based on the price action) will then go below the LPS or spring and my hard stop loss would be around R0.50. I would start with a smaller quantity on the most aggressive entry and build the position as the stock goes up and breaks out of the larger TR. Adjusting my stop loss for each entry on the way up. If I was doing a swing trade I would have a much more aggressive entry + stop loss and trade the swings and pullbacks on the way up.
Thanks very much