Arrowhead Properties Long Setup

This property stock has progressed very well in 2015 with a strong upward trend clearly featured on the weekly chart. The last 2 months have however been difficult as we can see how price pulled back pushing the weekly stochastic oversold and then how it rallied but ultimately ended last week with a long wick candle indicative of potential weakness early in the new week.

On the daily charts we see the expected follow through of short-term weakness yesterday - pushing the daily stochastic oversold. But today the daily candle was a bullish engulfing candle seeing a reversal off the 61.8% retracement level. We also have a sharp move of the stochastic back up over its signal line from the oversold level as well as a bullish moving average crossover with the 21 period EMA crossing the 89 period EMA upwards. 

To capitalise on this setup we're looking for a quick move from R9.80 back to the highs near R10.20 with a close below R9.60 invalidating the trade. The reward-risk is only 2-1 so fading the break above R9.60 would be acceptable to improve the entry level.