BXB is a major ASX100 company which trends well, making it a ideal candidate for Trendline Trading. The video explores trading this stock with the following buy rules
- Two consecutive weekly closes above a downtrend
- A new uptrend has formed with a valid uptrend line beneath price
- Price making higher weekly lows and higher highs
- Price has moved higher if buying in on the next day's open
Selling rules were
- A break below a stop loss of 15% below buy in price or a higher trough (as price moves up)
Result of the first trade was a profit of 73% over about 7 years while the second trade was terminated by the Covid fall in March 2020 for an 18% loss on that trade.
Price has formed a large pennant pattern which may see price move significantly higher - although we need to wait and watch!