EIX is presenting a fantastic second chance for traders. 🔴 EIX is presenting a fantastic second chance for traders.
A new opportunity has appeared on the NYSE:EIX chart. A few days ago, we had the breakout of a double top, which has already set a risk-free trade in motion. Now, it offers a chance for those who missed out to enter a new trade by taking advantage of a pull-back.
The last pull-back offered by EIX in July 2024 generated over a 20% return in 2 months, so we shouldn't overlook the pullbacks of this stock.
✅ What pattern is unfolding in EIX?
NYSE:EIX has created a technically perfect double top pattern. We have two identical highs, and it has just broken the support line at the same time as the 2024 upward trendline was broken.
It seems we are entering an interesting bearish phase for traders.
💰 How to trade this chart pattern?
A double top chart pattern is typically traded by selling when the support line is first broken.
In this case, a pullback is occurring to the support line, making it an interesting area to sell again.
By doing this, you can set the Stop Loss at a 1.5% risk and the take profits at 6% or 10%.
🛡️ The risk management strategy
As we have done in so many previous ideas, remember you can split the position in 2.
- 50% of the position in a take profits, at least, as large as your stop loss (adapt SL and this 1st TP to local supports/resistance levels). In this case, a 3% TP for 1,5% SL (see the chart).
- 50% of the position to a price as large as the previous pattern, which would mean a profit of 10%.
You can also use the 6% Take profits or even split the Take profits in two, searching for 6 and 10% profits.
✴️ ENJOY AND FOLLOW for more 😊
