KSPI – High-Conviction Breakout with Strong Fundamentals📈 Trade Setup
Symbol: KSPI (Kansas City Southern Pacific)
Timeframe: Daily
Strategy: Breakout + Fundamental Momentum
Entry: $96.82 (above consolidation high)
Stop Loss: $88.28 (8.8% risk, below SMA 50 & swing low)
Take Profit: $114.01 (+17.8% reward)
Risk/Reward: 1:2
🔥 Why KSPI?
1. Technical Strength:
Breakout from 3-week consolidation ($90-$96 range)
Volume Surge: 460K shares on breakout (20% above avg)
RSI(14): 66 (bullish but not overbought)
MACD: Bullish crossover above signal line
2. Fundamental Edge (Score: 9/10):
Undervalued: P/E 9.1 (sector avg 25) | P/B 0.009 (deep value)
Growth: Revenue +33% YoY | Net Income +24% YoY
Zero Debt: Debt/Equity = 0.016 (pristine balance sheet)
3. Catalysts:
Sector-leading profit margins (28%)
Institutional accumulation (13F filings show +15% ownership growth)
⚡ Trade Management
Position Size: 1-2% portfolio risk
Partial Profit: Scale out 50% at $107 (prior ATH)
Trailing Stop: Move SL to $96 after hitting $107
📊 Key Levels
Level Price Importance
Support 1 $92.50 20-day EMA
Support 2 $88.28 Stop Loss (SMA 50)
Resistance 1 $107.00 All-time high
Resistance 2 $114.01 Target (1:2 R/R)
⚠️ Risk Notes
Low Liquidity: Avg volume 320K → Slippage risk
Macro Sensitivity: Railroad sector tied to commodity prices
Overextension: RSI nearing 70 could prompt pullback
🎯 Why This Trade Works
Best-in-class fundamentals meet technical breakout
Asymmetric risk/reward (1:2 with clear invalidation)
Institutional tailwinds (smart money accumulating)
#KSPI #ValueInvesting #Breakout
"Would you buy this undervalued growth stock? Like/comment below!"
📌 Disclaimer:
Not financial advice. Conduct your own research. Past performance ≠ future results. KSPI is low-float – manage position size carefully. Fundamental score assumes sustained growth execution.
Discussion Points:
How do you trade low-float stocks differently?
Would you hold through earnings (next report: Aug 28)?
