BBWI Buy Setup - Strong Support, Risk/Reward 1/16

8 Nov 2024

Ticker: BBWI (Bath & Body Works)

Long Entry: Near current strong historical support level

Target: Last high (considered as take profit point)

Stop-Loss: Just below current support

Risk-Reward Ratio: ~1:16

Analysis:

BBWI has reached a strong historical support level and recently formed a local higher high, signaling a potential reversal to the upside. Additionally, volume has spiked, suggesting that recent panic selling may have seen shares shift from amateurs to professionals, who tend to buy at strong support levels. Owning alongside professional buyers can be advantageous, as it often reflects more strategic positioning.

The current setup provides a solid risk-to-reward ratio of about 1:16 up to the last high, which can be considered a key take-profit point. While this high serves as a primary target, I plan to manage my position flexibly, potentially closing portions earlier or holding some for further upside if the trend remains favorable.

Strategy:

Entry: Buy near current support level
Stop-Loss: Set just below support
Target: Last high as primary take-profit level; partial closes based on trend continuation
Key Points:

Volume spike at support suggests strong buying interest, possibly from professional buyers
Local higher high supports a potential uptrend
Risk management is crucial, with a close stop to limit downside and a favorable target ahead

Conclusion:
With strong support, higher volume, and potential professional buying, BBWI offers a compelling long opportunity with a favorable 1:16 risk-reward ratio up to the last high. This setup allows for both targeted and flexible profit-taking as the trend develops.

Note: I’m already in this position—I entered 7 weeks ago at the bullish engulfing pattern around the $29.21 level. I meant to share the idea back then, but the current market conditions are still quite similar, reinforcing my confidence in this setup.

Disclaimer: This is not financial advice. All information is for educational and informational purposes only. Trading and investing involve risk, and it’s essential to do your own research or consult a licensed financial advisor before making any financial decisions.

25 Nov 2024

Dagangan aktif

Glad to see a +19% gap on BBWI after Q3 results announcement. Took some profits, holding the rest for the long run. Let’s see how it plays out!

6 Jan

Nota

Fixed some profit today, +25%, still holding for the long run.

12 Mac

Dagangan ditutup: hentian tercapai

The stop loss was triggered on the remaining position. Overall on this trade I had take profits between +36% and 0.38%