The CLD long trade setup posted earlier has taken out the 3.57 level, triggering a long entry. We’re starting to see some volume come into the stock since the breakout but nothing spectacular. Breakouts that are accompanied by above average volume have a much lower chance of failing that those accompanied by average or below average volume. With that being said, price speaks loudest so CLD is an Active Trade.
Once again, the suggested stops on this trade are based using a 3:1 R/R to one’s preferred price target(s), with T2 (4.33) as the final target at this time. Therefore, CLD will be consider stopped out on any move below 3.32 (final target of 4.33 – entry price of 3.58 ÷ 3 = 0.25 maximum suggested stop allowance). One could also set a stop at or slightly below entry in order to assure a breakeven or minimal loss, should this breakout fail.
CLD 60 min breakout Aug 26th