Monday, October 27, 2014

Reach energy breakout from 2 weeks consolidation

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It form a correction wave ABC right after the IPO released, the bottom of the price was formed and  demonstrated 2 weeks long consolidation( 2 days public holiday), finally it was break away on last Friday with a long white candle.
This trading set up is very difference compare to the past I did, which is Breakout trade vs Retracement. As you can see the rectangle box I drew out is representing a consolidation, the big white candle is break away from 0.615-0.620 resistance, which is confirm reversal up.


Now the resistance become support and I will buy when it close to the new support which is 0.625-0.630
My trade plan
I buy now 0.625- 0.630
1st TP : 0.695 - 0.715
2nd TP: 0.755 - 0.765
SL candles close below 0.595


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