TSCO does not appear to be trending, although it is possible that a nascent uptrend is gathering steam. Something of an inverted head and shoulders formation may be taking shape, although at this stage it is too early to tell. At any rate, no developments at this time frame seem to be worth taking into consideration when evaluating price action at the shorter time frames I trade from.
Long Daily Chart
The long daily chart shows that TSCO has breached its lower price channel and that this stock is fairly reliable about rebounding quickly after having reached this price level. It is clear though that it is entirely possible that its price may continue falling for some time and that further signals are needed to justify taking a position at this point.
Volume has increased lately. This may signal that the the recent price down trend is coming to an end or possibly a transition to a regime of greater price volatility is taking place (or it may signal nothing at all).
Short Daily Chart
The short daily chart shows a bullish divergence between Force Index and price. MACD histogram confirms stalling downward price momentum. I am satisfied that there is sufficient reason to anticipate a price rise is imminent.
I will open a long position tomorrow. My stop loss will be placed at 160.9p per my stop loss formula. I will probably place my limit order to take profit in the vicinity of the 22-period EMA. That will entail adjusting the level of my limit order at the end of each trading day.
Entry: I opened a position from the long side on 24.Apr.17 at 177.1p.
Exit: I was unimpressed at the weakness of volume underlying TSCO’s price rebound on 24-25 Apr and revised my limit order downward to the 180p line of support and resistance. My order was filled when price reached this level on 26.Apr.17. My gross return for this trade was +1.64%.