Idea Body:
NTAP has given a major long-term breakout from a 25-year cup and handle pattern. The stock is currently retesting the breakout zone, which makes the current level a potential entry area from a risk-reward perspective.
Trade Plan:
Consider entering 50% position at current levels.
Stop Loss:
For the first 50% position, stop loss can be kept below 148 on a daily closing basis. A daily close below this level would weaken the breakout structure.
Add-on Entry:
The remaining 50% position can be added above 193, once the stock confirms further strength and resumes the breakout move.
Risk Management:
After the breakout sustains, a trailing stop loss can be used to protect gains and ride the long-term trend.
View:
As long as NTAP holds above the key breakout/retest zone, the structure remains positive. The current retest provides a good opportunity for staggered accumulation with defined risk.
NTAP has given a major long-term breakout from a 25-year cup and handle pattern. The stock is currently retesting the breakout zone, which makes the current level a potential entry area from a risk-reward perspective.
Trade Plan:
Consider entering 50% position at current levels.
Stop Loss:
For the first 50% position, stop loss can be kept below 148 on a daily closing basis. A daily close below this level would weaken the breakout structure.
Add-on Entry:
The remaining 50% position can be added above 193, once the stock confirms further strength and resumes the breakout move.
Risk Management:
After the breakout sustains, a trailing stop loss can be used to protect gains and ride the long-term trend.
View:
As long as NTAP holds above the key breakout/retest zone, the structure remains positive. The current retest provides a good opportunity for staggered accumulation with defined risk.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.