SBE is setting up for a continuation of the rally after consolidating for a few months.
- The 50 day SMA (green line) is acting as support - Stock is in a daily squeeze after consolidating for a month and could fire anytime - Bullish pennant pattern shows potential for a break out to continue the rally
Trade:
- Buy around $39-$40. - PT1: $53.68 (1.272 fib projection from the recent high to low) - PT2: $59.00 (1.618 projection) - Stop loss: $31.65
Trade closed: stop reached
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This ticker changed to CHPT. Stop reached and closed trade.
What do you think will happen when the merger happens?
ClearCutTrading
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@paulijzermans, my opinion is this will go higher. I like Chargepoint given their market dominance. However, I've never been good at telling the future. That's why the only way I've had success in trading is to have an exit plan for if I'm right AND if I'm wrong. The plan is to get stopped out at $31.65 or take some profits around $53.68. The reward to risk ratio is 2:1, so there's a good edge here. I usually sell 50% at PT1, 25% at PT2 (if we get there), and let the rest run after that with a GTC stop loss at the original buy price.