MATRIX AI Showing Bullish Divergence. 1:18 Risk:RewardMight be a good one to have a SMALL punt on. 1:18 Risk:Reward
There is not much volume so be aware that there could be slippage on your stops. The drawdown entering at 165 sat is 20% (not including slippage) so be safe.
However the upside potential is 370- 460% So for a $1000 position ~$200 Risk: $3.7k - $4.6k Reward.
Someone wanted me to have another look at this chart and the gambler in me says that's great odds, you only have to win 1 of these out of 18 tries to break even, and any more than that is pure cream! While this is tempting I won't be taking this trade. I feel like, for me, this is leaning more towards being gambling than trading. This is mainly because the setup is based purely on divergence and I am not familiar with the odds. Divergence on its own is not where my edge is. I like to have confluence with a fib level, price braking, testing and holding S&R or EMAS or an elliott wave count. So this play currently goes against my trading plan and in the long run may reduce my odds of success. Capital preservation is comes first!
LONG ENTRY: 140- 165 sat
1st TARGET: 777 sat
2nd TARGET: 929 sat
STOPS: below previous low
Never Trust. Verify.
DYOR. Not Financial Advice Just an Observation.
Always remember: Technical Analysis is not about being right, it's about increasing your odds.
Be prepared to be wrong. Risk management is key. Capital preservation above all else.
Gambeling
Paddy Power Betfair (PPB) Short PPB's investors haven't had much to laugh about this year, not even their comical television adds could cheer them up, i'm sorry to say that from the looks of the daily chart the stock could be in for some more pain soon. After a tremendous run in may the stock has seen a lot of downside until finally finding support at the 6000 level currently the price is having it's third attempt to break the support. In the run up to the last two tests of support the stock has put in lower highers which suggests that the sellers are fully in control of the stock, the last two trading days of last week posted bearish inside days suggesting some indecision in the stock indicating a potential move this week. I am inclined to go short in the name with a stop order at 5999 below support and a stop loss placed at the high of the day prior to the break out from the support. If you enjoyed this idea give me a follow there will be more to come and if you hated it please let me also, happy trading.
Joe
LSE:PPB
