BNS Momentum Trade " After Earnings"TSX:BNS
After we are clear of earnings, I'll be looking for the price to pull back to the Nov 28 resistance of 71.50 near the 50 SMA and 50 EMA (old resistance becoming new support). If we can get confirmation with a reversal pattern double/ triple bottom or inverted Head and Shoulder, I'll be looking to enter with Real Life Tradings momo indicator.
Stop loss will be placed just below the reversal pattern and the target will be at 100 WMA near $79.00.
I have a few concerns with hitting our target:
1) We might have the 200 SMA as resistance.
2) If The 50 WMA backs up the current resistance at 74.30.
If we are able to break through both resistances this could be a good 2.5r - 3 r trade.
If we fall through the 71.50 level, I'll be looking for a similar setup at the 69.00 and 65.00 areas.
Remember to always manage your risk when trading and have a stop loss.
Happy trading!
