Cigna "Last Call" Bull Trade

My Position
Initial Buy: 256.50
Second Buy: 259.50
Total Average: 258
Stop Loss: 256
Price Target: 278.50

Here is an example of a "Last Call" bullish entry. I am forecasting an explosive move upwards post United Health Group earnings tomorrow. This has been a laggard compared to its main peers UNH and Humana.

Entry: 261.32 (20 day moving average on the 4 hour chart which has served as consolidation support since April 5th)
Stop loss: 258.45
Price Target: 278.50
Risk to Reward: 1 : 5.99

If you move to the 4 hour chart, you can see the trading range has been getting tighter and tighter as the 20MA and 50MA moving averages converge. This signals to me a big move is coming.

Conditions on being wrong in this trade: A 4 hourly candle close below the 4HR 20MA(yellow) and failure to recapture it in the following 2 4 hr candles OR stop loss is triggered.

ความคิดเห็น:

CI 4 Hour chart and notes
-price action consolidation between 20MA + 50MA
-20MA serves as support
-A 4HR candle close below the 20MA and failure to recapture it in the next candle signals further bearish price action.
-A break of the 50MA(green line) and "resistance to support" flip signals our trade is well on its way to the 1st price target.

 

การซื้อขายยังคงดำเนินอยู่:

Missed my stop by 34 cents this morning. If stopped out, I will look to re-enter in the 255 zone. This is trading very cheaply relative to peers with a 10-11 PE & excellent free cash flow on a fundamental basis. Strong BUY!