We have previously laid out a plan for a short entry on PIK (see linked idea), now we are in a range of taking profit & looking to go long. Ideally the following must give confidence in a bullish reversal:
1. Price forming a swing low on the daily time frame.
2. Price closing above the green resistance line.
Closing above the 10 day moving average would have been the third criteria but it some 10% above, too much profit to sit out. It would be great for price to go lower than R43.02 so that there is a longer runway to the upside. Failure to go lower means there is risk of any bounce turning bearish without going much higher. We will update as we see price action unfold.
1. Price forming a swing low on the daily time frame.
2. Price closing above the green resistance line.
Closing above the 10 day moving average would have been the third criteria but it some 10% above, too much profit to sit out. It would be great for price to go lower than R43.02 so that there is a longer runway to the upside. Failure to go lower means there is risk of any bounce turning bearish without going much higher. We will update as we see price action unfold.
Comment:
Long position opened at price 40.87
Comment:
Though the long was opened early, PIK has ended the week having confirmed a daily cycle, also with a weekly swing low, looking for price to close above the 10 week moving average next.
Trade closed: stop reached
