EEP: Short Entry Stop $35.95

Here’s yet another paper trade order from my new trading strategy. The short entry stop is set at $35.95 for -30 shares (just over $1k total). Stop is at $37.79, the recent high (Figure 1). Target is $29.5, a support level just above the trendlines intersect about $27.5 (Figure 2).

Assuming a perfect entry at $35.95, the risk is $1.84. The reward is $6.95. Thus, the risk/reward is 3.77, which is above a 3-fold risk/reward as I prefer.

For this trade, I’ve also considered the sector strength as a whole. From Figure 3, we see that XLE is approaching a congestion zone about $48 – $50. So there is an upside resistance to the Energy sector.

Enbridge

Enbridge

Energy ETF

Related posts:

1. VE: Short entry stop $27.85
2. SCSC short entry stop $21.40, buy exit stop at $22.70
3. GAP entry short stop $6.89, exit buy stop $7.41
4. VNO: Short Entry Stop $49.70
5. USO: Short entry stop $32.21 / Exit stop $32.49