Aveng is in an extremely strong downward trend and it was noted that in these situations, the 3LB on a daily basis can give good clues as to trend continuation. In this case, we see that after a brief rally the 3LB has broken its previous swing low and so we have entered a short position at R4.40 on the daily chart (off a bearish daily candle painted yesterday) with the view of an ultimate move to R2.75. We will however start ratcheting the stop downward once a close below the initial target level at R3.85 is achieved.
This trade came out of the blocks well and a decent profit could have been achieved by ratcheting the stop down before the stock reversed upwards from a R3.33 low
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