Last week closing was $56,35.
Rationale for the trade :
- *2015/2016 support levels in the USD 55-57 area successfully (so far) tested.
- *USD 54 was resistance in 201.
- *RSI massively oversold on daily + RSI touching 30 on weekly chart (last time it happened was march 2008 & 15-20% bounce folloxed in next 6 weeks) .
- * Daily MACD recently turned up.
- * Bullish « Hammer » reversal pattern last friday .
Good entry points for the long term as long as levels cited are not broken ; so for long termers i would set stops below USD 53 – Risk 5,6%.
I set tighter stops for short term trades at USD 54,50 – Risk 2,90%.
was one month ago , stock is now around 10% lower.