PWE (Penn West Petroleum Ltd) was most recently added as a new Growth & Income Trade idea on March 21st. In reviewing the notes on that post, I noticed that this trade had two different entry criteria and one suggested stop criteria that might seem a bit confusing. The entry criteria were listed as either an entry at current levels (8.49) on the day of that previous post or on a break above the 8.80 resistance level. The suggested stop for the trade at that time was a weekly close on the uptrend line which was in place at that time.
PWE did exceed that suggested stop on a relatively minor close below that trendline but continue to move higher, eventually breaking above and making a successful backtest of the 8.80 resistance (now support) level which triggered the alternative entry. Since that original post two months ago, the uptrend line has been adjusted using a slightly lower slope (angle of ascent) and with prices currently challenging a more important, longer-term downtrend line, I wouldn’t be surprised to see PWE move somewhat below the current uptrend line to make one more pullback before breaking above the downtrend line. Doing so would probably take PWE below the modified uptrend line and possibly below the 8.80 support level. Whether or not PWE pulls back or consolidates further before moving higher, the next buy signal will come on a break above the key downtrend line that prices are currently challenging.
Growth & Income Trades are longer-term swing trade or investment candidates expected to generate an above average dividend yield and capital appreciation. As a sub-category of the Long-Term Trades category, these trades have both above average gain potential & longer holding periods than the typical swing trade ideas on RSOTC. As such, the new suggested stop from this point should be based on the one’s preferred price target(s), which are shown on the weekly chart below. PWE will also remain in as trade setup in both the Growth & Income & Long-term Trades categories with a new entry or add-on to be triggered on a weekly close above the primary downtrend line on the weekly chart, which also mirrors the downtrend line shown on the daily chart (first below). PWE daily live chart link PWE weekly live chart link
PWE daily May 29th
PWE weekly May 29th