Our Stock of the day / DALToday, we have a short setup to share. Here we will give you a full explanation of what we expect
a) First we want to see the Weekly chart: We can see a major resistance level
b) Working from that level, we can go to the 1H chart. Here we can see a range with an inner zone ( Minor support zone / the expected target for the bearish movement)
c) Inside the Range, we can see a broken ascending trendline + corrective structure making a pullback on that broken structure
d) The corrective structure is composed of an ABC pattern. From a technical perspective, the structure is finished and is ready to trade
e) We have set our Entry orders below B and our Stop above C. Our Break Even level is defined with a horizontal yellow line. Finally, our Take profit is the Minor support zone
f) The risk Reward Ratio of this setup is 1.54
g) We will use 1% of our capital as maximum risk on this setup
h) We will cancel the setup if the price keeps rising and we lose our Risk Reward Ratio above 1.5
i) REMEMBER: Trade safe, protect your capital, and always understand what you are doing.
