TPI Entry and Stop loss , Enwave on the Ventures exchange in Canada, ENW.V

Yesterday a post introduced TPI.  

In the morning, I waited on a 2.68 position for part of the day, then adjusted my entry to 2.70.  My order was filled.  During the course of the day the 2.68 level was hit as predicted with only 2000 volume, therefore I might not have been filled if I kept 2.68 as my entry.  By the end of the day the stock was at 2.72. 

On the daily, we can see that TPI ran into the 20 day moving average and back down to 2.68 before recovering a bit.  As expected the stock is now oversold, based on the Slow Stoch being under the 20 level.  The price action is now in the low end of the gap up at the end of September which was accompanied by strong buy volume.  

A closer look reveals a double bottom, at the 2.68 level. 

The cyan line is my entry, the lighter purple line is the 2.68 level which should be reasonable support.  The 2.66 level is strong support as well. 

Stop loss is set at 2.65.  5 cent downside risk for a minimum potential increase of approximately 18 cents.   Ideally, I will enter into a break even stop loss as quickly as possible.



ENWAVE ticker: ENW.V

Was going to write about this yesterday but got lazy, so to say that I expected price to move down yesterday doesn't really mean much at this stage, even if I was correct.

However, this break of 7% should start raising alarm bells with a stock that is quite over extended.  This does not mean it can't continue to press higher, or bounce tomorrow because of such as strong sell off today.  

I would recommend keeping a tight stop loss. An example of a decent stop loss would be at the 1.81, as it is just below the 20 day moving average, or for the more aggressive at 1.73, below the 50 day moving average. 


Volume: Strong sell entered the market today (3x normal volume). 
MACD: Bearish divergence showing up in the MACD, as there are lower highs in momentum, and higher highs in price action. 
Slow Stoch: The K line has fell below the 80 level


The bullish Momentum looks like it is fading a bit, but this stock is in a uptrend still.  The Andrews pitchfork show that breaks below the 1.70 level, could mean a downside target of 1.35.

15 min chart:  The move today was quite impulsive and closed, very close to the day's low.
There could be a bounce within the next couple of days which might be a good exit point or a basis to setup an appropriate stop loss.  Until the 20 day moving average is broken, the stock is still in an uptrend, and traders should just be more cautious until a new high is reached.