MI Technovation Trading Idea
Technical Setup:
The stock previously rebounded from both the uptrend line and the Fibonacci 0.618 retracement level, indicating strong support.
However, if the uptrend line breaks, it could signal a weakening of the bullish trend.
Entry Strategy:
Buy MI Technovation shares in the entry zone between RM 1.74 and RM 1.90. This range offers a favorable risk-reward ratio based on historical support levels and Fibonacci analysis.
Profit Taking:
If the price rises to RM 2.75, take profit, as this is a potential resistance level. The upside from RM 1.90 to RM 2.75 represents a 44.7% gain.
Risk Management:
If the price drops below RM 1.74 or if the stock breaks the uptrend line, exit the trade to manage risk effectively. Breaking the uptrend line could signal a reversal in trend, adding to the sell rationale.
Risk-to-Reward Ratio:
The upside from RM 1.90 to RM 2.75 is about 44.7%.
The downside risk from RM 1.90 to RM 1.74 is about 8.4%.
With the potential of an uptrend line break as an additional risk factor, this strategy offers a solid risk-to-reward ratio of 1:5.3, making it a favorable setup.
The stock previously rebounded from both the uptrend line and the Fibonacci 0.618 retracement level, indicating strong support.
However, if the uptrend line breaks, it could signal a weakening of the bullish trend.
Entry Strategy:
Buy MI Technovation shares in the entry zone between RM 1.74 and RM 1.90. This range offers a favorable risk-reward ratio based on historical support levels and Fibonacci analysis.
Profit Taking:
If the price rises to RM 2.75, take profit, as this is a potential resistance level. The upside from RM 1.90 to RM 2.75 represents a 44.7% gain.
Risk Management:
If the price drops below RM 1.74 or if the stock breaks the uptrend line, exit the trade to manage risk effectively. Breaking the uptrend line could signal a reversal in trend, adding to the sell rationale.
Risk-to-Reward Ratio:
The upside from RM 1.90 to RM 2.75 is about 44.7%.
The downside risk from RM 1.90 to RM 1.74 is about 8.4%.
With the potential of an uptrend line break as an additional risk factor, this strategy offers a solid risk-to-reward ratio of 1:5.3, making it a favorable setup.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.