Trade Objective: Bounce Play
Stock Name: SSI
Reasons for Putting on Watch list:
1) Price had been dropping for 3 days.
2) The price was resting at 76.4% Fibo retracement area.
3) A bullish divergence was visible from July 14 to July 20, 2015.
4) The price formed a box pattern that shows drop had already been arrested.
Reasons for buying:
1) Price broke out of 50 line of the box consolidation at 8.57 on July 21. (First tranche buying)
2) Price broke out of the top box at 8.80 on July 21. (Second tranche buying)
Reasons for selling:
1) Day 3 of the bounce
2) Price was unable to pierce through 61.8% reverse fibo level at 9.28
3) RSI weakened
4) Bearish candlestick