Safe Trade : Long Xiaomi on Bottoming Out effect
Updated
Xiaomi appears to have hit the bottom and appears to be on the recovery after a morning star session. The DOM also looks good where the buyers are overpowering the sellers. Good for a long market entry for Xiaomi:
- Entry: 10.22
- SL: 9.66
- TP: 11.61
Not sure what is the fundamentals behind it?
- New products?
- Oversold?
- Thawing of the trade war between US and China
- Dovish Fed?
Any case, still have bad news such as the weakness in Chinese trade in the second half of 2018 due to trade war, Brexit stalemate, US Gov Shutdown, probe into Trump's Russian links and so on. But in any case, this is a safe bet as Xiaomi is a solid company that had fallen from its IPO price of $16. Went long myself. Risk is there but good risk to take.
- Entry: 10.22
- SL: 9.66
- TP: 11.61
Not sure what is the fundamentals behind it?
- New products?
- Oversold?
- Thawing of the trade war between US and China
- Dovish Fed?
Any case, still have bad news such as the weakness in Chinese trade in the second half of 2018 due to trade war, Brexit stalemate, US Gov Shutdown, probe into Trump's Russian links and so on. But in any case, this is a safe bet as Xiaomi is a solid company that had fallen from its IPO price of $16. Went long myself. Risk is there but good risk to take.
Note
Turns out that I am wrong and suffered a loss. The bottoming out process is longer than expected.Note
Missed the breakout. My stop loss was set too high and my timeline was too short to accept the eventual breakout.
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