LR - Breakout Play

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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







Comments

  1. Andrew TrademarkMarch 30, 2018 at 1:53 AM

    Test Comment

    ReplyDelete
    Replies
    1. ArgyllApril 24, 2018 at 2:58 AM

      Hi Sir Andrew!
      Amazing Trade discussion!
      May question lang ako sir, pano po plotting niyo sa "6.8 (Resistance, Fib 38.2%)"? Saan ung 0% and ung 100%? Thanks!

      Delete
    2. Andrew TrademarkApril 24, 2018 at 3:52 AM

      Weekly Chart. 12.06 sa 100%, 3.57 sa 0%

      Delete
    3. ArgyllApril 24, 2018 at 4:53 PM

      Thank you!

      Delete
  2. UnknownApril 5, 2018 at 3:43 AM

    2nd! nice, updated by 4/5... :-)

    ReplyDelete
  3. ardrichApril 12, 2018 at 5:21 AM

    Nice execution boss! Personally, I have yet to respect my signals naman. Dun palaging nadadale. MA's lang gamit niyo sir?

    ReplyDelete

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