SXE (Southcross Energy Partners, L.P.) appears ripe for a breakout. This is a low-priced, high-risk utility (gas) stock but high return potential as this one could run up to the 2.13 area & quite possibly beyond if it can take out the downtrend line with conviction.
SXE daily July 18th
SXE will be added as a Long Swing Trade Setup with an entry to be triggered on a break above 1.65, ideally on above-average volume (1.5x or greater 60-100 day avg. vol.) as that helps to confirm a breakout & decrease the chances that a breakout will fail.
The price targets are T1 at 1.73 & T2 at 2.06. The maximum suggested stop* is a daily close below 1.45. Due to the above average gain & loss potential on this trade as well as the expected volatility from a low-priced stock in a volatile (energy) sector, the suggested beta-adjusted position size for this trade is 0.7.
*The max. suggested stop is based on the final target. Those targeting T1 or a level above T2 might consider using a stop based on an R/R or 3:1 or better calculated to your price target(s).