Bearish potential detected for ABB

6 Apr

Entry conditions:
(i) lower share price for ABB along with swing up of the DMI indicators and swing down of the RSI indicator, and
(ii) observation of market reaction at the support level at $3.80 (from the open of 6th February) after closing below 50 day MA.

Stop loss for the trade would be, dependent of risk tolerance:
(i) above the resistance level from the open of 28th February (i.e.: above $4.00),
(ii) above the resistance level from the open of 12th February (i.e.: above $4.08), or
(iii) above the resistance level from the open of 24th February (i.e.: above $4.17).

12 Apr

Dagangan aktif

UPDATE (week ending 11-Apr): For anyone who wished to undertake an aggressive trade after the sell-off that occurred in the stock on Monday 7th April, a trade entry signal did occur on Wednesday 9th April as the ADX increased (albeit slightly) whilst the -DI increased and the RSI decreased on the daily chart, all in respect of the $3.80 price level noted above. Do note, however, that this trade is based upon the 50/200 day MA's, and share price action has actually respected the 200 day MA to the upside during the trading week, which works against the trade thus far. As such, the charts are suggesting caution to tighten the stop to above the recent swing high of $4.10 from Thursday, which would work well in case of full respect of the 50 day MA.

18 Apr

Nota

UPDATE (week ending 17-Apr): Share price action gravitated back towards the 50 day MA throughout the week and closed just underneath the 50 day MA at the end of the trading week. Aggressive traders may wish to lower stops to just above the most recent swing high formed on Tuesday (15th April) to counteract the effect of a sudden swing-up in order to minimise potential losses.

25 Apr

Nota

UPDATE (week ending 24-Apr): After having had this trade move against the short-sellers, an opportunity had arisen during the week to potentially 'break-even' once again towards the end of Tuesday and at the beginning of Wednesday before sharply rebounding to once again to stubbornly close above the 50 day MA. For anyone still remaining in the trade, the lowered stop mentioned last week still remains to minimise potential losses as a stop loss - any swing down would allow a lowering of the stop loss.

3 Mei

Dagangan ditutup: hentian tercapai

UPDATE (week ending 02-May): For anyone still remaining in the trade (see last week's note for further explanation), the lowered stop above the most recent swing high formed on 15th April has now been taken out in order to prevent further losses by the end of the week.