Trade: AERO – A Strong Buying Opportunity

I initially posted this chart on 5th of December on advfn board expecting a retrace to lower 8s or early 7s before prices could start moving to 10p area for the completion of Bat Pattern.

However, there was new of placing which caused a minor sell off but the bat pattern formation is still valid. In fact now since B point of BAT pattern has been broken upwards, it becomes a great BAMM style  (read more about it here) buying opportunity.  At the moment AERO is looking a very strong Risk/Reward buying opportunity with several technical reasons (Bat Pattern, 3 Drives Pattern, Harmonic Movements)  to buy.

Snapshot:

This is how AERO is looking now. This can give us approximately 1:4 Risk/Reward Ratio.

Reasons For Trade:

1. 3 Drives Pattern is forming potentially taking price to 10p
2. Bat Pattern is still forming
3. BAMM entry available right now.
4. Price is slightly oversold on lower time frames

Stop Placement:

5.25p

Targets:

9.5p

Trade Execution:

On market

Concerns:

None

Planned News/Events Expected:

Unknown

Post Execution Review:

 

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