Slope of Hope Blog Posts
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Last time around, this trade on Sears Holding (SHLD) didn't work too well. This time around, I'm taking a different approach to this trade. Instead of buying on the breakout which is what I did before and got burned on the head-fake it did, I'm buying on the pullback to lower channel of the uptrend.
That allows me to keep risk tight (about 4% max) while possibly benefiting from a move that could go to the upper channel at around $64.00. That gives me about a 3:1 reward to risk ratio which is ideal.
I scaled in to this one as well and my buy-in price is at $56.50 with a stop at $54.48.
Here's the SHLD trade setup.
Be sure to check out Ryan's Blog at SharePlanner.com
SPX broke up slightly from the middle bollinger band yesterday which leans slightly bullish, and the bollinger bands are pinching on the daily chart, which as with when they were pinching around the 1400 area, is indicating that a significant trending move is coming soon. Overall I'm leaning towards that move being upwards for reasons I'll explain: