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 !
