Picking bottoms in MTN

4 giu

Well, this is very much against the trend, but there could be a triple bottom forming. Buying here gives us a 1:3 risk-reward ratio, which we think is attractive. Our trade is from this support level to the 200-day moving average. Should the triple bottom formation play out, it opens for a target well above the 200-day moving average giving the trade a 1:6 risk-reward. Our play here is to either stop out below our stop, or take half the profit on the 200-day moving average and keep the last half of the trade open, on a trailing stop, and sell at the formation target (around R117).