RRC has rallied strongly off its early January lows, about 25%. The rally seems to have lost some steam though resulting in two bearish candles right around a resistance level on January 15th and 16th. I went short at the closing price of the January 16th inverted hammer. Feel free to zoom out on the chart to see why I drew the resistance level where I did.
Stop loss is set just above the high of the January 15th candle: $12.19 or 4.10% risk,
Ideal target is a retest of the January lows: $9.23 or about 21%.
Risk/ reward is 5.17.
WHY THIS TRADE MIGHT FAIL:
Overall market is relatively strong.
Fundamental risks to the upside in natural gas like cold weather.
RSI is only at around 48 indicating lots of room to run higher.
The resistance level does not have may confirming touches in recent trading.
Good luck; have fun.
Stop loss is set just above the high of the January 15th candle: $12.19 or 4.10% risk,
Ideal target is a retest of the January lows: $9.23 or about 21%.
Risk/ reward is 5.17.
WHY THIS TRADE MIGHT FAIL:
Overall market is relatively strong.
Fundamental risks to the upside in natural gas like cold weather.
RSI is only at around 48 indicating lots of room to run higher.
The resistance level does not have may confirming touches in recent trading.
Good luck; have fun.
Trade closed: target reached