Simple13 Trading Idea
Current Price: RM 1.15
The stock successfully broke a 126-day consolidation and is now trading with strong upward momentum, pushing the RSI into the overbought range on the daily chart. Since the price is extended, waiting for a pullback could offer a better entry.
Potential Pullback Supports
Fibonacci Retracement Support (Daily Basis):
I adjust the Fibonacci retracement levels daily based on recent price action. Typically, I focus on the 50% retracement level, a key area where buyers might step in. This keeps the support level dynamic and in line with market movements.
20 EMA Support (Daily Chart):
The 20 EMA acts as a dynamic support level in a strong uptrend. If the stock retraces to this level, it could offer a buying opportunity, as prices often bounce off the 20 EMA in a sustained uptrend.
Trading Plan
Entry Area: RM 1.10 (near Fibonacci and 20 EMA support)
Target Price: RM 1.30 (based on projected resistance and price targets)
Cut Loss Level: RM 1.05 (if the stock closes below this level, indicating trend weakness)
Risk-to-Reward Ratio: 4:1
Summary
This setup aims to capitalize on the uptrend while managing risk with a clear entry, target, and stop-loss level. Adjusting the Fibonacci retracement and 20 EMA support on a daily basis will help refine entry timing.
Disclaimer: This is not financial advice. Conduct your own research before making investment decisions.
AADB
The stock successfully broke a 126-day consolidation and is now trading with strong upward momentum, pushing the RSI into the overbought range on the daily chart. Since the price is extended, waiting for a pullback could offer a better entry.
Potential Pullback Supports
Fibonacci Retracement Support (Daily Basis):
I adjust the Fibonacci retracement levels daily based on recent price action. Typically, I focus on the 50% retracement level, a key area where buyers might step in. This keeps the support level dynamic and in line with market movements.
20 EMA Support (Daily Chart):
The 20 EMA acts as a dynamic support level in a strong uptrend. If the stock retraces to this level, it could offer a buying opportunity, as prices often bounce off the 20 EMA in a sustained uptrend.
Trading Plan
Entry Area: RM 1.10 (near Fibonacci and 20 EMA support)
Target Price: RM 1.30 (based on projected resistance and price targets)
Cut Loss Level: RM 1.05 (if the stock closes below this level, indicating trend weakness)
Risk-to-Reward Ratio: 4:1
Summary
This setup aims to capitalize on the uptrend while managing risk with a clear entry, target, and stop-loss level. Adjusting the Fibonacci retracement and 20 EMA support on a daily basis will help refine entry timing.
Disclaimer: This is not financial advice. Conduct your own research before making investment decisions.
AADB
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