Charter ($CHTR) Idea

2 nov 2023

CHTR


Charter Communications (CHTR) - Trade Plan Update

Trade Setup: Anchored VWAP (AVWAP) Rebound

Rationale:
The initial earnings release day was marked by a distinctly bearish sentiment, with CHTR closing below two critical support levels: the psychological threshold of $375 and the established support at $374.42. Observing the stock's performance into Day 4, there has been a notable turnaround, with CHTR appreciating by 10.05% to $406.51 from a low of $369.38. This recovery and upward momentum indicate a shift in market perception from bearish to bullish, aligning with typical bullish behavior.

Entry Strategy:

The entry point will be identified upon CHTR’s retracement to the AVWAP level derived from the earnings release. This price action would indicate a fair value entry, offering a competitive position.
A conditional entry is set to trigger if CHTR tests and subsequently closes above the AVWAP, confirming buyers' control.
An order will be placed using a Buy Stop Limit at an identified intraday high, with the intention of execution on the following trading session.
A Stop Loss will be set below the previous day's intraday low to protect the trade from adverse movements.
Profit Targets:

The primary target is set at a breach above $400, with a subsequent goal of $411.98.
The strategy will be to scale out of the position in stages, securing profits systematically as the targets are achieved.
This trading plan is predicated on the assumption that the bounce off the AVWAP represents a substantial shift in momentum, and the outlined entry and exit parameters are designed to capitalize on this potential upswing while managing risk.