Bearish potential detected for XYZ

Sep 14

Entry conditions:
(i) lower share price for XYZ along with swing of DMI indicator towards bearishness and RSI downwards, and
(ii) observing market reaction around the share price of $111.02 (open of 24th February).

Depending on risk tolerance, the stop loss for the trade would be:
(i) above the previous swing high of $117.25 from the open of 4th September, or
(ii) above the potential prior resistance of $118.99 from the open of 19th August, or
(iii) above the previous swing high of $124.00 from 29th August.

Sep 20

Order cancelled

UPDATE (week ending 19-Sep): Share price action at the beginning of the week said it all for this potential trade with a gap-down right through the area of interest of $111.02 on Monday. General rule of thumb: watch and observe whenever this occurs, no need to rush. Trade didn't present an opportunity on the Monday. Share price opened at exactly the point of interest on Tuesday morning and then shot right up to the north - that's ok, let the trade go.