Why This May Be The Highest Probability Trade We’ve Seen In Months
This trade might be the best setup we’ve found in quite some time. Not only has this stock been trending up for the better part of a year, we are also bouncing on a key level of support while the market also seems to have bounced higher.
There are no guarantees in trading, however, looking for trades that have multiple confluences confirming the trade you think you see is always how we gauge if a trade is high probability or not. This just so happens to be one of those trades.
If you take a look at the video below, you’ll see a nice trend upwards and the stock of the day, Hilton (HLT), respecting that trendline and making higher highs from each successive bounce off support. Fast forward to now and we have a different support level being tested.
Over the past several weeks, the stock has seemingly started to trade a bit more sideways than the majority of the year that saw a steady increase in price. However, as you can see from the most recent sessions, the stock has bounced off this more recent level of support.
The idea here is that this bounce, coupled with the bounce in the overall market, could at least imply a test of that resistance level near 156. Whether or not the stock will break through that is not quite the trade, although it would be nice to see a breakout through this resistance.
The trade here would likely be a swing trade in which you go long for the move toward resistance, ideally on a pullback where we don’t break that support level. Enter the trade on the bounce and ride it up to that resistance level, trimming along the way, but staying in the trade to find out whether or not we break through 156.
Be sure to keep this trade on close watch as it is a higher probability setup when compared to the other possible trades presenting themselves at the moment. These setups don’t come around every session, be sure you’re ready to execute…
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