LR - Breakout Play

My First Blog

$LR - March Favorite Stock

$LR - BUY Signal on March 6, 2018

Technical Analysis:

• Price broke out 100 day High Resistance of 4.8x
• Breakout Candle: 62% bullish, highest range in the past 2 weeks
• Volume: +636% spike against 20day average
• Traded Value: Php 160M+, highest traded value in 1 day for the past year
• EMA20 > MA50, MA50 = MA100, start of uptrend
• One of the Most Active Stock of the day
• Conviction: HIGH

$LR - 1 year+ chart view

I was late to bid when the stock broke out. My bid at 4.92 during Run-off (last 10 mins. before Closing) of Mar.6 wasn't executed. So I just bought at 4.94 (2 ticks above 4.92) instead on the next day's Open. The number of shares I bought was calculated, enough for me to risk at least 2% of my overall Port in case I had to cut it immediately if it goes down beyond 4.4x.

Port snap as of March 7 - the day I bought LR

Trading Plan:

• Cut at 4.4x (below the previous' Open) or whenever the setup is invalidated
• Sell whenever price goes below EMA20
• GTC Sell (half) at 6.8 (Resistance, Fib 38.2%)
• Trail stop whenever Price closed below the Open of previous Momentum candles or on Darvas box breakdown.

$LR - Daily Chart - After 12 days

• Trailstop means moving the StopLoss level up as soon as the Price starts moving up to protect profit
• After 12 days, the price hit my TP1. I sold half of my shares at 6.8 with approx +38% profit! 😃
• Then I kept half of my shares for Trend Following.

SELL Transaction Part 1

<update - 04/05/2018>

$LR - Daily Chart - 04/05/2018. Price broke down EMA20

• The Price struggled to stay above 7  pesos after March 19 breakout. It went sideways for 10 days ranging from 6.3x - 7.2x before it broke down the range.
• As planned, I sold all remaining shares (remaining half) at 6.19 (Apr.5 Closing Price) because the price broke down EMA20
• It also happened that the Price broke down multiple support area, see Darvas box plot below, adding more conviction that I need to sell all my remaining shares immediately at this point.

Price broke down 3 supports, 6.7x, 6.4x. and MA support

• I only gained approximately +24% on the remaining shares
• Average gain for the 2 SELL transaction is +28% - not bad, though I expected a lot more from this stock.

SELL Transaction Part 2