Hi everyone,
today for something a little different I am looking at a chart that is in a decent sideways range and is showing some good characteristics for a bounce off the low-end.
The area that I have circled shows the price breaching the support level but you should note the very long-tailed candle which may be a good initial sign of a rejection of this level. Secondly you can see that the subsequent candle provided an engulfing pattern of the first which is the second bullish signal. Lastly, there was a crossover of the %k and %d lines on the Stochastic Oscillator which may be pointing toward a change in the momentum.
My preference on this trade setup would be to see the share price higher at the open of the next session and then make a decision from there depending on momentum that we see. I think an appropriate stop level would be $42.95 (just below the low of the last candle) with the initial profit target set for $47.12. Based on the closing price from Friday this would represent a risk:reward ratio of around 1:2 which is appropriate for this type of trade.
All the best,
DL.
CMC Markets Blog 
Whats the ticker for this stock? – cant seem to locate it even under TVB…cheers!
Hi there
the official code is 511 but depending on what platform you are using it may be 0511. If you can do a word search I would hope that ‘Television’ would be enough to short list it which is what I used when hunting through charts today.
Let me know if you have any other questions.
DL.