Short-Term Swing Trade:QBE:ASX Insurance Post-New Caledonia NewsTrading Idea: QBE Insurance (ASX)
Technical Analysis:
QBE Insurance, listed on the ASX, has experienced a price drop following recent news from New Caledonia. Despite this, the stock remains in an overall uptrend and exhibits strong fundamentals, making it a potential candidate for a mean reversion trade. Stock has generated Bullish candle stick pattern with RSI breaking out and rising
Entry:
Current Market Price (CMP): $17.75 to $18.00
Stop Loss:
Lower of previous candle: $17.40 to $17.42
Target:
If the price crosses the 9 EMA or reaches $18.45
Risk Reward:
Ratio: 1:2 to 1:2.5
Allocation:
Up to 5-6% of your capital
Type:
Short term swing trade (1-2 weeks)
Conclusion:
Given the recent price dip and the strong overall uptrend of QBE Insurance, this setup offers a favorable risk-reward ratio for a short-term swing trade. Consider entering within the specified range and manage risk with the defined stop loss and target levels.
