There is a downward trending channel on UA
since December. On January 2, the price broke through the long-term trendline
, indicated in green. The price is currently making a pullback to this line, which is not uncommon when a trendline
is broken. This, combined with the downward short-term trendline
, indicated in red, creates a sort-of pivot point
. It looks as though the price will attempt to make another lower low, following the channel. A conservative profit-taking point would be along the dashed red line, around the $64 area. The stop-loss would be 2%, just above the green line. For those not concerned with a smaller risk-reward ratio, the stop-loss could be placed just above $70, which may serve as psychological resistance.
- Green line broken
- Follow downward trend channel
- Stop-loss: 2%
- Profit-taking: 5%
- Risk-Reward: 2.5
P.S. This is my first idea!