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Home » Trade Journal » Profitable Trades » 11. SSE – 28.Apr.17 – 08.May.17

11. SSE – 28.Apr.17 – 08.May.17

Weekly Chart


SSEWeekly

SSE is not trending. It is arguably trading in a range whose upper and lower bounds were established between Dec. 2014 and Feb. 2016.

Long Daily Chart


SSELongDaily

The long daily chart reveals an uptick on volume recently, which may suggest that a full blown down trend in forming or that a period of increasing price volatility is beginning. This chart also shows that this stock reliably reverses direction upon reaching or breaching the lower price channel and then rebounding at least to the 22-period EMA.

Short Daily Chart


SSEShortDaily1

A bullish divergence between Force Index has developed. MACD histogram has ceased growing more negative, signalling stalling downward momentum. Together with this stock’s history of reversing direction after reaching the lower price channel, indications appear strong that this stock’s price is set to rise in the immediate future.

I will purchase this stock at the open of the trading day tomorrow. I will set my stop loss at 1329.5 per my stop loss formula (x=3). I will exit by limit order that I will place in the vicinity of the 22-period EMA when think I have a better idea of how far and fast this stock’s price is going to rise.

Entry: I entered a long position on 28.Apr.17 at 1393p.

SSEShortDaily2

Exit: I closed my position by limit order on 08.May.17 at 1442p for a gross return of +3.52%

Follow Up


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