A Brutal Lesson in Risk Management
It's always risky trying to pick bottoms. Anyone who has held this stock in the last 18 months has been punished. This is why risk management is important, especially if you're playing the game of catching a bottom or 'buying the dip'. Understanding technical analysis is important, but also understanding how to define your risk and managing it accordingly.
I prefer to wait for a reaction at support when the downtrend is so strong. Technically we could find some support her between $21-22. There's a confluence of factors here:
-0.786 Fibonacci Retracement Level
-Value Area Low of the range
-Daily support level
-Bullish RSI divergence
I will be waiting for a reaction at these level and I will be taking my trade accordingly. Any loss of support at this level would indicate we are heading lower, to the long term support line at $10.
Not financial advice, do what's best for you.
I prefer to wait for a reaction at support when the downtrend is so strong. Technically we could find some support her between $21-22. There's a confluence of factors here:
-0.786 Fibonacci Retracement Level
-Value Area Low of the range
-Daily support level
-Bullish RSI divergence
I will be waiting for a reaction at these level and I will be taking my trade accordingly. Any loss of support at this level would indicate we are heading lower, to the long term support line at $10.
Not financial advice, do what's best for you.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.