Winning Trade #002 MRC (Round 2)

Yes. You read it right! $MRC again! Hoho!

This time, this trade was technically and systematically planned.

Oh, di to kagaya nung isa na sa gap up at emosyon lang ng mga tao umasa! Haha!

To those who missed my first $MRC trade, click below:

$MRC Gap Up Play

Okay. Unlike that one, this trade was based on charts. Remember I told you that I will be monitoring this stock? And yes, I found a good entry point by reading the pattern. After all, Technical Analysis is all about patterns!

Let's start!

$MRC Chart as of March 7, 2018

First things first. Clearly, this was a breakout play. And $MRC broke out big time! The way I play breakout plays is that I buy at breakout point, buy on pullbacks, or wait for consolidation. 

Obviously, option one was not really an option. lol. Missed the breakout and I didn't want to ride too high.

Wasn't able to spot a good pullback point either. Right after my gap up play, I put a bid for pullback but it was so low that my bid was nowhere to be found. Haha!

Last option was to watch its consolidation and eventually buy if I see a pattern.

Luckily, I saw one: 

Ascending Triangle.

Typically, an ascending triangle is a bullish formation as a continuation of a pattern. So parang buwelo lang bago lipad. That's my point of view that time. So sabi ko, 

"Uy, pwede ko i-trade to."

Enter March 7, 2018. 

As you can see in the above chart, $MRC closed at 0.74. During the first hours, I bought at 0.75

Transaction

At this point you may be wondering, "Tae, ano nakita mo dyan at binili mo?!"

Well, look at this chart:

The stock was forming higher lows. Enough for me to think "Pwede to."

And yes, I made that trade. 

March 13, 2018 just before the closing bell, I closed out my position. I sold everything.

Transcation

"Wait. Why? The triangle didn't break!" You may be asking.

Here's the chart:

Yes I know. The ascending triangle didn't break. The chart and pattern was still intact. 

In fact, if the price held that 0.90, I'd still be holding it. 

But it didn't. 

As you can see in the chart, It already tried to break that 0.90 resistance but it failed. For me, it's a Double Top. Ending up a red candle in the process.

"Yes we can see that, but as we've told you, the triangle didn't break!" You may be asking again.

Yes the pattern didn't break. Actually, it formed another higher low, right?

But that time I thought, if the pattern isn't broken, I can still sell my position and re-enter right? 

I had two options: 

1) Wait for the price to go in line with lower yellow line : I was assuming it would flirt around 

0.80-0.81. I can buy on that range.

or 

2) I'll just buy on breakout point which is 0.90 and above.

So yeah, I made the decision and pressed that sell button. After all, I already have my secondary plan. 

My AEP was 0.75. I'm selling at 0.88. Yes, I wasn't able to sell intraday and I've missed my chance to sell past 0.90++. In return, I only gained 15%. More or less. Honestly, I was expecting a breakout. A ceiling play! (libre lang mangarap)

But it didn't happen. 

And once the market goes against your bias, you get out. That time nagiging emotional narin ako kase bantay nako ng bantay. Haha. Isa rin to sa mga reason kaya sa sideline muna ko.

As of today, March 16, 2018, $MRC closed at 0.68/share. Imagine that!

The triangle was broken. And it broke down so bad! Though I initially planned on buying around 0.80, I'm glad I stopped myself. The selling pressure was real!

Right now, I'm still monitoring this stock. Who knows what will happen next week? next month?

But since I don't see any pattern, I'm just waiting. Hopefully I get another good run with this one!

-tpt