Buy ICPT at this multiple support - 8:1 reward to risk ratio
Pattern: $84-$90 support has proven itself a multiple times. Stock is in a medium term consolidation pattern between $85 to $130 range.
Edge: Buying so close to or right at support gives us a great reward to risk ratio. If the stock breaks below support, we are stopped out for a small loss, but if support is protected again, we have more higher upside.
Risk Management:
Bought at $87
Stop Loss = $84
Profit target 1 = $113
Profit target 2 = $130
Profit target 3 = open
Risking $3 to make at least $26 for PT1. That's over 8:1 ratio for just PT1!
Edge: Buying so close to or right at support gives us a great reward to risk ratio. If the stock breaks below support, we are stopped out for a small loss, but if support is protected again, we have more higher upside.
Risk Management:
Bought at $87
Stop Loss = $84
Profit target 1 = $113
Profit target 2 = $130
Profit target 3 = open
Risking $3 to make at least $26 for PT1. That's over 8:1 ratio for just PT1!
Trade closed: stop reached