Our Stock of the Day / EBAYToday we have a long setup to share. Before starting, its important to say that this is long-term setups; this requires patience and the idea of waiting without observing. Let's go with the full explanation of this.
a) We will start with the weekly chart. Pay attention to 2 items - The price has broken a long term ascending channel - Currently, we have a clear corrective structure on the edge of the broken channel
b) On the 4hs chart, we will make the last arrangements of the setup
c) We are using Fibonacci extensions to define our target because we don't have any technical structures to use + we are at all times high
d) Using Elliott Wave Analysis, we can count 1 and 2 (our corrective structure composed by an ABC pattern), and we are expecting 3 to come
e) The main target is the 1.618 level of Fibonacci as the expected level for the 3rd wave
f) We will execute this trade using 1% of our capital. Entry Stop and Take profit are the ones shown on the chart. We will protect our entry on the first fibo extension (move stop loss to break-even)
g) We will cancel the setup if the price goes below C
h) Remember: Trade safe, protector your capital, and always understand what you are doing!
