Stock Of The Day / 01.23.25 / SMR

220
01.23.2025 / SMR

Fundamentals. Neutral news background.

Technical analysis.
Daily chart: Uptrend. We mark the previous day's high at 26.50.
Premarket: Increased activity without a clearly defined trend movement.
Trading session: The upward movement from the opening was stopped at 26.50. The pullback did not lead to a change in trend and we are observing an unsuccessful second attempt to breakout the level at 10:30 a.m. After that we are observing a very small pullback, which indicates the weakness of sellers. We are observing a retest on decreasing volumes after breakout the level at 10:42. We are considering a long trade to continue the upward movement.

Trading scenario: #breakout-retest (#tightening-retest) of level 26.50

Entry: 26.86 above the high of the retest. Aggressive entry into the breakout without waiting for a retest is acceptable, when setting a stop behind the low of the last pullback.

Stop: 26.47 we hide it behind the level.

Exit: In this trade, it is quite difficult to manage the position following the trend, so taking profit with RR 1/3 or higher will be a good result.

Risk Rewards: 1/6

P.S. In order to understand the idea of the Stock Of The Day analysis, please read the following information.

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