Long or Short: Long
Entry Point: Long at market
Stop loss: 82.50 (below solid range and former lows)
Profit target: 84.00 (top of the range, big “00” number)
Risk Percentage: 1.0%
Reward-to-risk Ratio: 2:1
Tools used: Stochastics
Trade Rationale:
Optimism on a new bailout package for Greece could keep the euro well supported next week. Also, the range on the 4-hour chart hasn’t been broken since December 15 last year if you don’t count the brief fall in January 9. Right now the range is also showing a nice bullish divergence with Stochastics still in the oversold territory.
Trade Adjustment:
I will enter at market as soon as the markets open next week. I will probably add another position with a tighter stop if it reaches the bottom of the range. I will move stop to break even as soon as price hits the middle of the range.