WEB.ASX Webjet breaking out of $4.00

Hello Fellow Trader!

WEB.ASX sitting inside the channel awaiting any type of Covid related vaccine news for possible expansion.

Key levels broken at $4.00 with volume support now testing resistance at $4.20. A breakout could suggest $5.00 target at a minimum within the trend channel. WEB.ASX bottomed out in April but failed to break the low soon after. With Australia’s aviation industry dormant and earning season completing, price was not able to break the lower suggesting we could have witnessed the bottom.

Key Points:
- Price holding below the 200 EMA
- Price holding above the 50 EMA
- Fibonacci 61.8% broken and heading towards 78.6% (June high – August low range)
- Volume increasing supporting price appreciation

Key Levels:
Support - $4.00
Resistance – $4.20, $5.00

Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – $4.00
Supporting Entry – $4.21

Candle Reversals for entry
- Bullish Hammer
- Bullish Engulfing
- Bullish Piercing

The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.

IF: Price breaks below 3.74 level and violates 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.

Reward / Reward Targets:
Optimal Entry $4.00 – Target 1 $5.00 = 4x Reward to Risk
Supporting Entry $4.21 – Target 1 $5.00 = 1.5x Reward to Risk