Sunday, September 20, 2015

Reunert breakdown continuation short trade

The 3LB on the RLO daily chart has broken below its previous swing low as indicated on the left hand chart and with the 21EMA< 89EMA this supports a potential further move downwards. Looking at the price chart on the right, we would set this up by entering the short at a break of Friday's low at R61.75 with a soft stop in at a close above R65.25. Target levels to the downside are highlighted and we will also look to ratchet the stop down over time.

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1 comment:

  1. UnknownOctober 9, 2015 at 7:06 PM

    This trade provided a good opportunity for entry but there has been a subsequent green bar painted in the daily 3LB (6 October) which has negated the primary entry rationale. Exit at R63.49 should have been taken capping the gross loss at around 0.8 x original risk level which is an acceptable loss level versus original risk taken.

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