The REMX (Rare Earth Strategic Metals ETF) swing trade has effectively hit the first price target (T1) for a quick 7% profit from Thursday’s entry. Depending on your trading plan, consider booking partial or full profits and/or lowering stops, if holding out for T2 or the potential (but not yet official) T3. Previous & updated daily chart (with the white candle showing today’s pre-market session trading) below.
REMX daily May 14th
REMX daily May 19th
A couple of reminders:
Price targets on short trades are always labeled on the charts at the support level where a reaction is likely upon the initial tag although buy-to-cover limit orders should be set slightly above the actual support level to minimize the chances of missing an order fill, in case the buyers step in a bit early (plus, buy order occur at the ASK price whereas the lowest price of the day is typically filled at the lower BID price, i.e.- where sell orders are filled). In the case of REMX, the pre-market session L.O.D. so far has been 93.16, about 7/1oths of 1% above the 92.49 support level. Conversely, sell orders on long trades should be set slightly below the actual resistance level one is targeting.
I often share my preference to use OCO (one-cancels-the-other) AKA OCA (one-cancels-another) orders for swing trades. OCO or OCA orders consist of a closing trade (i.e., a sell limit order at your price target for a long trade or a buy-to-cover order at your price target for a short trade) coupled with another trade at your stop-loss level. When either order is hit, the other order will automatically be cancelled.
Additionally, I like to select the option to have my profit-taking orders with the “allow order to be filled outside the regular trading session” option, while not selecting that option for the stop-loss order. That helps to take advantage of the sometimes outsized price swings in the pre & post-market sessions in order to help fill your profit-taking order while NOT allowing that same volatility to clip your stop-loss order.
Swing traders should also make sure to select the GTC (good-til-canceled) option vs. a day order (which expires at the end of the day).
Reaction or no reaction here around the T1 (support) level, T2 remains the current final target for this trade, with the next objective short entry or add-on to come on a solid break and/or close below the 92.50ish support.