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!

 

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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