Making new highs!
Whether you choose to chase the price or are waiting for a retracement, there is two support that you should definitely watch out for!
1) 245
2) 220 - 200, this is more a zone.
Your stop-loss price will have to be base on either one of the support.
220-200 is the price range in which major consolidation occurs. I.e loads of demands!
Depending on your style of trades, there are a few ways you may go about this
1) Aggressive chase.
Chase this current breakout. Stoploss is set below the current support of 245. This is an aggressive play. You are hoping that price will rally further and are not looking for a retrace.
Pros: You're in the trade. You will not miss the if it continues to run.
Cons: You are prone to be stopped out by a retracement. Hence the stop loss ensures you will still be in the trade, albeit at a higher price.
Given the nature of the breakout, this is most likely the best play. However, ensure your risk management can stomach a drop to 245
2) Conservative approach
Wait for the price to retrace back to 245 then enter. A slightly conservative play. You are hoping that sellers are still lurking around to push down the price.
Pros: You will be able to get a better price. Your risk/reward will be much higher
Cons: Miss the trade if it does not retrace.
3) Hybrid approach
Split your entry into two batches. Chase with one batch. Wait for a retrace to 245 with the other batch.
Pros: Best of both worlds.
Cons: Won't be as profitable as either 1 or 2. Twice the commission
This is a more balanced approach. My favorite approach.
4) The Long shot.
Wait for the price to dive to 220-200.
Pros: The established major demand zone. There are bound to be buyers here. The best price.
Cons: Price might never go back there.
There is no best way to go about taking a position. Each option has its own pros and cons. Overall, this counter is a bullish uptrend. You, as a trader, should determine your style and the approach you should be taking. More importantly, you should prioritize taking care of your risks. Let the market worries about profit.
Whether you choose to chase the price or are waiting for a retracement, there is two support that you should definitely watch out for!
1) 245
2) 220 - 200, this is more a zone.
Your stop-loss price will have to be base on either one of the support.
220-200 is the price range in which major consolidation occurs. I.e loads of demands!
Depending on your style of trades, there are a few ways you may go about this
1) Aggressive chase.
Chase this current breakout. Stoploss is set below the current support of 245. This is an aggressive play. You are hoping that price will rally further and are not looking for a retrace.
Pros: You're in the trade. You will not miss the if it continues to run.
Cons: You are prone to be stopped out by a retracement. Hence the stop loss ensures you will still be in the trade, albeit at a higher price.
Given the nature of the breakout, this is most likely the best play. However, ensure your risk management can stomach a drop to 245
2) Conservative approach
Wait for the price to retrace back to 245 then enter. A slightly conservative play. You are hoping that sellers are still lurking around to push down the price.
Pros: You will be able to get a better price. Your risk/reward will be much higher
Cons: Miss the trade if it does not retrace.
3) Hybrid approach
Split your entry into two batches. Chase with one batch. Wait for a retrace to 245 with the other batch.
Pros: Best of both worlds.
Cons: Won't be as profitable as either 1 or 2. Twice the commission
This is a more balanced approach. My favorite approach.
4) The Long shot.
Wait for the price to dive to 220-200.
Pros: The established major demand zone. There are bound to be buyers here. The best price.
Cons: Price might never go back there.
There is no best way to go about taking a position. Each option has its own pros and cons. Overall, this counter is a bullish uptrend. You, as a trader, should determine your style and the approach you should be taking. More importantly, you should prioritize taking care of your risks. Let the market worries about profit.