Wix.com Ltd. (
WIX) is a cloud-based web development platform known for its user-friendly website-building tools and growing AI-driven solutions. The stock has recently broken above a key resistance level at $170.24, signaling potential bullish momentum for swing traders. This analysis evaluates the setup, entry, target, stop loss, risk management, and technical considerations for a swing trade targeting resistance near $221.
Trade Setup
Entry:
Aggressive Entry: Enter on a daily close above $170.24 with strong volume, ideally above average. Current price (assuming near $170.24 post-breakout) offers immediate entry.
Conservative Entry: Wait for a pullback to $170.24–$172, where the level is retested as support, accompanied by a bullish candlestick pattern (e.g., hammer or bullish engulfing). This reduces risk but may miss the trade if no pullback occurs.
Suggested entry price: ~$171–$172 for a balance of confirmation and value.
Profit Target:
Primary target: $221, based on the next resistance level.
Partial exit: Consider taking 1/3 or 1/2 profits at an intermediate level (e.g., $190–$200, if prior swing highs exist) to lock in gains while letting the rest run to $221.
Revised Stop Loss: Once the price reaches $190, move your stop losses up to protect profits if momentum continues.
Stop Loss:
Place a stop loss below the breakout level to protect against a false breakout. A reasonable stop is 1–2% below $170.24, around $166.80–$168.
For tighter risk management, use a stop below the nearest swing low (e.g., $154.22), though this increases position size due to a wider stop.
Suggested stop loss: $166.80 (2% below $170.24 or 4% below an entry at $173), balancing risk and breakout validity.
Reward to Risk:
There is a 5:1 reward to risk ratio ifWIX should hit the $221 mark (highly unlikely to do so by its earnings date in 12 days). Even if WIX can get to $200 before the earnings date, a solid reward to risk scenario plays out for this set-up.
Contingency: IfWIX fails to hold $170.24 and breaks below $166.80, abandon the bullish setup. Alternatively, watch for a retest of $154.22 for a potential new swing low entry, though this would require reassessing the setup.
WIX) is a cloud-based web development platform known for its user-friendly website-building tools and growing AI-driven solutions. The stock has recently broken above a key resistance level at $170.24, signaling potential bullish momentum for swing traders. This analysis evaluates the setup, entry, target, stop loss, risk management, and technical considerations for a swing trade targeting resistance near $221.Trade Setup
Entry:
Aggressive Entry: Enter on a daily close above $170.24 with strong volume, ideally above average. Current price (assuming near $170.24 post-breakout) offers immediate entry.
Conservative Entry: Wait for a pullback to $170.24–$172, where the level is retested as support, accompanied by a bullish candlestick pattern (e.g., hammer or bullish engulfing). This reduces risk but may miss the trade if no pullback occurs.
Suggested entry price: ~$171–$172 for a balance of confirmation and value.
Profit Target:
Primary target: $221, based on the next resistance level.
Partial exit: Consider taking 1/3 or 1/2 profits at an intermediate level (e.g., $190–$200, if prior swing highs exist) to lock in gains while letting the rest run to $221.
Revised Stop Loss: Once the price reaches $190, move your stop losses up to protect profits if momentum continues.
Stop Loss:
Place a stop loss below the breakout level to protect against a false breakout. A reasonable stop is 1–2% below $170.24, around $166.80–$168.
For tighter risk management, use a stop below the nearest swing low (e.g., $154.22), though this increases position size due to a wider stop.
Suggested stop loss: $166.80 (2% below $170.24 or 4% below an entry at $173), balancing risk and breakout validity.
Reward to Risk:
There is a 5:1 reward to risk ratio if
WIX should hit the $221 mark (highly unlikely to do so by its earnings date in 12 days). Even if WIX can get to $200 before the earnings date, a solid reward to risk scenario plays out for this set-up. Contingency: If
WIX fails to hold $170.24 and breaks below $166.80, abandon the bullish setup. Alternatively, watch for a retest of $154.22 for a potential new swing low entry, though this would require reassessing the setup.
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.
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.