Saturday, 24 June 2017

SAP

Sappi is a global company focused on providing dissolving wood pulp, paper pulp and paper-based solutions to its direct and indirect customer base across more than 100 countries. We produce approximately 5.7 million tons per year of paper, 2.4 million tonnes per year of paper pulp and 1.3 million tonnes per year of dissolving wood pulp.  more....

This stock is one of the market performers and trading in an uptrend. Though, the thing to note is the good risk-to-reward ratio if traded. Stepping through it, we notice the Stochastic indicator (A) is oversold and the stock price has found support on the trend line (E).  A kicker false break at point B, printing the new low and turning point. This price level is loved by traders as its confirmed by the volume peak at point C.  Looking at the centered five day moving average, at point D, it's noticeable that the trend has changed, as it start pointing upwards.

 

How to trade: Use a stop loss or exit point just below point B. Buy in at the break of the resistance line at point D.  This will give you about 450 per share at risk.  Use 1% of your available portfolio capital and divide that by the R4.50 to determine the amount of shares to buy.   Once the stock price is moving in your favour and you are in the money, you can increase your position as well to reap the benefit of a well planed and executed trade.

Also read How to find a reliable stock, not letting you down: more...

Remember: Money management is more important than to be right or wrong. more....

Your goal is to be around forever making money with trading, therefore the best way you can go about that is by making it hard to be knocked out.


Trade with caution as the markets are very unstable and uncertain.
@Duplo123 or join us on Skype
 

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