Executive SummaryPrices was breakaway from the weekly resistance at $0.780 and stay above it in 3 consecutive weeks, this is an evident wave 3 formation was confirm ! most likely price will heading to target of $1.00/$1.15/$1.39 near future. Daily chart is showed wave 3 development in progress which is heading to target of $0.910/$0.950 and possible of $1.00. I do anticipate daily chart triangle breakout just around the corner !!! which will bring the price toward target of $0.930/$1.00.
My trading plan:I bought in EG on Friday because 4 consecutive(weekly+daily) positive wave degree is showed uptrend, I am anticipate daily pattern will break pennant formation to the target of $1.00/$1.15/$1.39, I will locking partial profit, apply trailing stop and trading along the target and support resistance line. My final target is $1.39. Any weakness toward $0.800/$0.790 is offer me buying opportunity. I will cut loss if price drop below $0.740
Technical JustificationElliot wave : Weekly Chart formed 2 consecutive wave 3, it was confirm break away from the wave 2 flat formation, this is very bullish implication was wave 3 is most strongest and longer uptrend in Elliott wave theory,
Wave 2 flat formation
Daily Chart :I discover two alternate wave most likely will happen !!
1st Alternate is wave 3 development is ongoing, target is $0.910.
2nd Alternate count is extended wave 5, internal structure is wave 2 correction end and wave 3 kick start, once price go beyond $0.855, extended wave 5 is confirmed wave3 confirmation, target us $1.13
Chart Pattern tradingDaily chart is formed triangle break above 0.835 will break price move to $0.930/ $1.00
Support ResistanceImmediate support is $0.800 and strong support at $0.790/$0.745.
Immediate Resistance at $0.840/$0.890/$0.90/$1.00/$1.20.
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Many people committed to buy stock is very easy, when come to profit taking and cut loss is one of the most difficult part in trading world, talking about profit taking is dealing with greed and stop loss is dealing with fear, cutting loss is a must in trading world because it stopping my capital continue to loss, in order to stay alive in trading world... it is a must !!! it is not an option, else I suggest you get out of the trading and you are not suitable.
I wanted to used simple example to share on the cut loss ... you bought an egg and prepare to used it for fry rice, some how you notice/suspect the eggs you pick was/may turn bad.... the question now is shall out throw/scrap the bad one and pick another .... or nevermind bet or hope the suspicious "bad" egg will be good and risk the good rice which is ready to cook ? you make the call... I am believed in order to win I got to know how to prevent I am loss in the market... if I notice I am wrong... I got to admit and cut the loss and make a next move.
As a reminder for myself
I am always remind myself If the trend is go again me and violated my SL limit, I will cut loss base on the risk preference.
Stop Loss is painful process because I making loss, but it is necessary to take it, it is very important because it protect my capital to ensure I am stay in the market.
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