Upon further review of the chart, I am revising the first price target (T1) on the CAG (Conagra Brands Inc) Active Long Swing Trade + Growth & Income Trade from the previous “unadjusted”* target of 15.98 to an adjusted target of 15.91, slightly below the intersecting 15.98 price resistance & 200-day moving averages. Additionally, T1 is now the final & sole official price target, with T2-T4 now potential** price targets. Previous & updated daily charts below.
CAG daily April 17th
CAG daily April 30th
CAG daily Aug 18th
Had I reviewed the CAG chart earlier today, especially in light of yesterday’s sell signals on XLF & SPY & today’s rejection off the QQQ downtrend line, I probably would have just went ahead & closed out the trade, which is was already at about a 17% profit, including both the $0.35 dividend already paid on June 3rd (to shareholders of record on April 30th, shortly after the entry/breakout) and the upcoming dividend of $0.175, which will be paid out on Sept 2nd to those holding the stock on the last record date of July 30th. Longer-term trend traders who plan to hold out for any or all of those additional targets (or even just T1) might consider raising stops to at least entry or breakeven, at this time.
*As always, unless stated otherwise, the price targets shown on the charts for the official swing trade ideas are what I refer to as “unadjusted” price targets. They are the price levels that are auto-populated with my horizontal lines placed at resistance (for long trades) or support (short trades). My preference & method for considering a target hit is to set the sell limit order slightly below the actual resistance level you are targeting, in case the sellers step in early.
There isn’t a set number or hard rule regarding how far below the actual resistance level is a function of both the stock price (e.g., if targeting the $10.00 resistance level, then a sell limit order around ~$9.95 seems reasonable. On a $2,000 stock, a sell limit order around $1,990 would be ideal. So basically, on a trade targeting low double-digit profits, about less than 1% (around ~½%) below the actual resistance level where a reaction is likely upon the initial tag. On a trade targeting mid to high double-digit or even triple-digit gains, the percentage below the target when one should book profits in order to minimize the chance of missing a fill, should the sellers step in early, will increase proportionally.
**Potential price targets are just that: It appears there is a decent chance, or potential, for those price targets to ultimately be hit. However, my confidence isn’t high enough, nor is the R/R favorable enough to make those targets “official”, i.e., targets that I have a high degree of confidence will be hit.