17/10/14 – This BEAV has not performed well compared to other Aerospace Stocks this week and has broken through the 0.5 and 0.618 Fibonacci retracement support levels. Also a False Bar has formed on the bottom of the Stochastic study indicating the potential start of a Bearish Trend. This trade now has a very low probability of achieving a Wave 5 in the Short or Medium term so I have cancelled the Buy Order. Chart as Below.
30/11/14 – It has been over a month since I put this order on and although it has not made a new low it has been rising slowly. With Aerospace stocks in general doing better at the end of last week in reaction to the lower Oil prices, I have decided to tighten up the entry strategy to this potential trade without breaking any of my indicator setup rules. It is worth noting that the MACD Histogram is close to crossing the zero line from -ve to +ve, along with the MACD and Signal lines very close to crossing, which could indicate this stock price is finally ready for a move higher. I have adjusted the Stop BUY Order to 81.04 which is out of the Trend Channel and Above the 6/4 MA High line for next weeks bar position. This entry point is also above the last attempted breakout the week after the Wave 4 extreme. The adjusted Target level is now 107.50, which gives a Risk to Reward Profile of 1:2. The Stop Loss remains the same @ 68.53. Chart as Below.
18/10/14 – This BE Aerospace Stocks price was not immune last Week’s large volatility on the US Markets. The Price made a new Wave 4 extreme low at the Fibonacci 0.5 retracement level and then closed the for the week higher than the weeks open price forming along lower shadow Doji, indicating although the Sellers had most of the Week, the Buyers were strong gong into the close. I have switched to a 10, 70 Oscillator for this trade setup as the Wave 3 was almost two years and the use of this longer type Oscillator is called for. There are now 8/9 of my trade setup indicators in the green as the TJ’s Ellipse was taken during last weeks session and acted as support along with the 0.5 Fib line. I have adjusted the entry point to 86.95 which is outside the Trend channel for next weeks bar position and above the 6/4 MA High line and would give 9/9 indicators in the green on entry. Stop Loss is below the Fib 0.5 line @ 68.53 with the Take Profit Limit Order at the adjusted Target level of 120.00, giving a Risk to reward profile of over 1:1.6 for this trade setup. This is still a conservative entry and would need a large movement to trigger next week, but if that happens then the momentum would be with this Bullish trade. Chart as Below for this ever evolving BE Aerospace Stocks trade setup
12/10/14 – The Wave 4 pull back on this BE Aerospace stocks price made a new low in last weeks session t the same support level that was tested during the range bound period of the wave 3 before the gap up (Long Tailed Doji highlighted). All the previous trade setup indicators are still good but the Risk to Rewards is right on the limits as the entry strategy at this moment still must be the same. I have decided to cancel the open order and monitor the price over the next week or two and see if the Wave 4 pull back finds support in terms of taking out the TJ’s Ellipse with confirmation at a Fib retracement level and then turns back up. This way I can adjust the entry strategy to ensure a better Risk to Reward profile if the indicators remain strong. Patience at these choppy market times is key. Chart as Below
04/10/14 – This potential Long trade on the BE Aerospace stocks is setting up well with 7/9 of my trade setup indicators in the green and with the 6/4 MA High having to be crossed before entry that will make 8/9. Last weeks session witnessed new Wave 4 low formed at a previous support level, which is highlighted on the chart below. This Wave 4 pull back comes after a two year wave 3 bullish trend that has two small pull backs this year to form this support level. There is still potential for the price to fall further to form new wave 4 lows around the Fibonacci 0.382 level that is taken between Wave 2 and Wave 3, which would then take out the TJ’s Ellipse that would act s support. I cannot ignore this current support level so I have decided on a conservative entry to this potential Long Trade on the BE Aerospace Stocks. Stop Buy order @ 88.55 which is above the 6/ MA High line & Trend Channel for next weeks bar position, above the highs of the last 3 bars (weeks) and above the high of the Major pivot (I) on the previous wave 3. the Stop loss is @ 78.60 with the initial Take Profit Limit order @ 107.50, which gives a Risk to Reward profile of over my minimum required 1:1.6. If the price does make new lows on this current pull back next week I will adjust the orders as necessary, as long as the setup indicators are still good. Charts are below for the setup of this potential Long Trade on the BE Aerospace Stocks.