Home / Newsletters / ShadowTrader Free Trade Idea of the Week – CONN – Long…
CONN.gif

ShadowTrader Free Trade Idea of the Week – CONN – Long…

Conn’s, Inc. (CONN) – Long
Entry – 31.28
Stop – 29.50
Target – 35.40

 

Barring any unforeseen political news, here is our reasoning behind our thinking that CONN is likely to make another leg higher as soon as this week.

Since the move off September lows (red circle), CONN has enjoyed the support of the twenty day moving average (green line, 20ma).  We’ve illustrated the stock’s pattern of ascent which has been a leg higher followed by consolidation in the form of bull flags.

Examining the current flag closely, we see that a false breakout occurred six trading days ago, followed by a pullback into the flag and a “look under” the 20ma.  It is likely that a good number of swing traders caught in the false breakout by CONN were utilizing the 20ma as a reference to park stops beneath.  The “look under” cleared out those stops prior to stronger days last Thursday and Friday which both held closing prices near their highs of the day.  This is a classic move by the market.  Frustrate longs just before taking a stock higher.

Based on the entry, stop, and target prices noted above, this trade idea offers a better than 3 to 1 reward to risk ratio.


Source link


About admin

Check Also

Peter’s Premarket Perspective | Friday, September 24, 2021…

https://shadowtrader.net/ The Market Profile value areas and ShadowTrader Pivots for /ESZ21 and /NQZ21 Futures are ...

Leave a Reply

Your email address will not be published. Required fields are marked *

NFL Jerseys 2019