Entered Avago during trading day, not normally something I do and in the past I have lost money doing it. Im feeling sort of emotional and feel the need to do something. That being said, the there is still a trade plan with an entry and exit. It still meets the parameters of a potentially good trade as set out below.The only thing is that it may be an early entry.
- Stop 96.25 Risk reward 7.75%
- Consolidation started in December 2014 after gap up
- New high Jan 28 (Yesterday)
- Above 50 DMA
- Long term up-trend
Getting in yesterday at the new high would have exceeded our risk reward parameters. The correct time to have bought here would have been 1/8/15 when $AVGO it closed at a new high. The pull back today gave us another chance to get in. We could use 103.82 as an aggressive stop, however it would not give us the 50 DMA as protection. With the market whipsawing , We prefer a lower risk which is where we set the stop.