STNE trade ideas
Stoneco Ltd is hitting the rock !A follower wanted me to do a chart analysis on this. Here you go :
1. Weekly bullish trend is broken down
2. Daily bearish trend remains intact
3. 4H chart price action bearish
Would I trade this ?
Unlikely ! Why ? Thanks for asking , haha.
1. Rules - Sell high , buy low.
Are we at the high point or low point ? The answer is low point. That means you have about 5 dollars more to go before it revisit the bottom on 24 Dec 18. Thereafter, the possibility of a rebound is there and that will eats into your entire 5 dollars profits. Therefore, from a risk/reward ratio, would you want to take this trade ?
You have to make your own decision as every trader has different reasons to take on a trade, like I am with Ten Cents and a few others.
Trade safely, my friend !
STONECO LTD pre earnings UpgradeJPMorgan analyst Domingos Falavina upgraded StoneCo to Overweight from Neutral with a price target of $48, up from $43. The upgrade reflects the analyst's reduced cost of equity estimates driven by lower Brazil credit default swaps and the recent correction in the shares. Further, Falavina has "growing optimism" on StoneCo's lending potential. This new revenue stream could "substantially increase economics to Stone," the analyst tells investors in a research note. Falavina believes current clients already being serviced by Stone present an additional 75% of EBT-equivalent upside if the company were able to cross-sell to all its clients. source thefly
Read more at:
thefly.com
StoneCo Ltd. engages in the provision of financial technology solutions. It caters to merchants and partners that conduct electronic commerce across in-store, online, and mobile channels. It offers cloud-based technology platform, electronic payments, and automation of business processes at the point-of-sale. The company was founded on March 11, 2014 and is headquartered in São Paulo, Brazil
STNE 1D ASCENDING TRIANGLE LONG BREAKOUT TRADEAscending Triangles are repeatable trading chart patterns.
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Ascending patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
$STNE Breaks Out Of Its Wedge$STNE is set to keep climbing after breaking out to the upside on Friday. The company delivered strong Q3 results and $BRK-B has a 7.9% stake in the company. Here are the highlights:
StoneCo (NASDAQ:STNE) Q3 total revenue and income of R$671.1M (US$159M) jumped 60% from the year-ago quarter.
Q3 adjusted net income of R$201.9M rose 126% Y/Y.
Q3 adjusted net margin of 30.1%, up 8.5 basis points from a year ago.
Total payment volume of R$32.6B rose 50% Y/Y.
Total active clients reached 428,900, up 83% Y/Y; net addition of active clients was 68,700.
Q3 take rate of 1.91% increased from 1.85% in Q2.
Guggenheim Securities analyst Jeff Cantwell raises price target to $42 from $38; maintains buy rating.
Contrasts with Quant rating of Neutral; Sell-Side average rating is Bullish (5 Very Bullish, 3 Bullish, 6 Neutral, 2 Very Bearish) with average price target of $36.98.
StoneCo Ltd. provides financial technology solutions that empower merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. It distributes its solutions, principally through proprietary Stone Hubs, which offer hyper-local sales and services; and technology and solutions to digital merchants through sales and technical personnel and software vendors. As of December 31, 2018, the company served approximately 267,000 clients, which included digital, and brick-and-mortar merchants, primarily small-and-medium-sized businesses; and 108 integrated partners, such as global payment service providers, digital marketplaces, and integrated software vendors. The company was founded in 2000 and is headquartered in São Paulo, Brazil.
As always, use protective stops and trade with caution.
Good luck to all!
Possible Short squeeze in Stone CoStoneCo Ltd. engages in the provision of financial technology solutions. It caters to merchants and partners that conduct electronic commerce across in-store, online, and mobile channels. It offers cloud-based technology platform, electronic payments, and automation of business processes at the point-of-sale. The company was founded on March 11, 2014 and is headquartered in São Paulo, Brazil
