TPG Telecom Limited
Long
Updated

Potential outside week and bullish potential for TPG

127
Entry conditions:
(i) higher share price for TPG above the level of the potential outside week noted on 3rd October (i.e.: above the level of $5.19).

Stop loss for the trade would be:
(i) below the low of the outside week on 1st October (i.e.: below $4.96), should the trade activate.
Trade active
UPDATE (week ending 10-Oct): Although a higher price was achieved on Monday 6th October, market reaction was fairly benign on that day, and the trade didn't really activate until Wednesday 8th October, with a decent follow-through day on the Thursday. The share price closed above both 10 and 30 day moving averages at the end of the trading week. For those traders/investors interested in active risk management, the share price rise offered the opportunity to take a small piece 'off the table' to reduce risk, and the opportunity to raise protective stops to a level beneath the recent swing high of $5.14 from the 24th September, at the very least. Trade now considered 'further bullish potential trade'.
Note
UPDATE (week ending 17-Oct): A consolidation week for TPG this week - no action suggested / required. Share price closed above the 10 and 30 day MA's at the end of the trading week, after bouncing off support/resistance lines to the upside.
Note
UPDATE (week ending 24-Oct): A swing-up pivot point formed on 22nd October at the low of $5.28 provides the opportunity to raise profitable stops comfortably considering there is a gap between this area and the candle formed on 15th October. Price action since 22nd October has swung up accordingly with a shift in DMI/ADX and RSI indicators as confirmation. Share price closed above both 10 and 30 day MA's at the end of the trading week.
Note
UPDATE (week ending 31-Oct): A good week of share price action saw the share price test overhead resistance areas of $5.55 and $5.62 formed from the opens of 19th June and 17th July, respectively. Potential support may come in to play from the open of 10th July ($5.48). The share price closed above the 10 and 30 day moving averages at the end of the week. An upcoming return of capital to shareholders on 14th November has potential to heavily affect the share price action, so individual discretion is certainly warranted in the decision making process.
Trade closed manually
UPDATE (week ending 07-Nov): Share price action tested the 10 day MA and closed well at the end of the trading week in anticipation of the upcoming return of capital to shareholders on 14th November. Since this is a binary event with potential to heavily affect the share price action independent of the chart, coverage will now cease and individual discretion is advised. All of the best!

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