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Early today, at 12:06pm (at 3723c), I published the following idea for our clients:
Speculative Trading Opportunity. The short term price trend is strong hence the share could trade higher before starting to develop a topping structure followed by a bearish reversal. While currently 'strong', the following factors may point to the current upside reward-to-risk being unattractive, opening up a sell/short trade, with the following as key drivers: (1) Trading at 2x standard deviation (2SD) over 50 days (2) the 7-day and a 14-day RSI are at 92 and 81 respectively (3) the overbought conditions are occurring at a prior resistance level, following a significant short term price advance. The yellow price candles represent a best probability price action scenario over the short term, which a trader could consider. The probabilities are based on several factors which may include: short term rating, medium term regime, momentum, support/resistance, candle structure, moving averages and standard deviation among others. These are short term views and may be in contrast to medium and long term outlooks which are based on the weekly and monthly charts. These scenarios are subject to change based on sentiment, subsequent price action and company specific or macro news flows. Time Stop: 19 September 2023
TRADING LEVELS:
Entry: 3723c
Target: 3495c
Stop-loss: 3880c
Early today, at 12:06pm (at 3723c), I published the following idea for our clients:
Speculative Trading Opportunity. The short term price trend is strong hence the share could trade higher before starting to develop a topping structure followed by a bearish reversal. While currently 'strong', the following factors may point to the current upside reward-to-risk being unattractive, opening up a sell/short trade, with the following as key drivers: (1) Trading at 2x standard deviation (2SD) over 50 days (2) the 7-day and a 14-day RSI are at 92 and 81 respectively (3) the overbought conditions are occurring at a prior resistance level, following a significant short term price advance. The yellow price candles represent a best probability price action scenario over the short term, which a trader could consider. The probabilities are based on several factors which may include: short term rating, medium term regime, momentum, support/resistance, candle structure, moving averages and standard deviation among others. These are short term views and may be in contrast to medium and long term outlooks which are based on the weekly and monthly charts. These scenarios are subject to change based on sentiment, subsequent price action and company specific or macro news flows. Time Stop: 19 September 2023
TRADING LEVELS:
Entry: 3723c
Target: 3495c
Stop-loss: 3880c