I bought 200 shares of BBD, a Brazilian bank, at $23.31.
Setup: Breakout-Pullback. The stock pulled back to the breakout level and has a strong volume pattern. As a plus, Brazilian stocks have been on fire.
Risk: My initial target is the old high around $25. I will either take full or partial profits at this level. If I feel the stock is ready to breakout to another new high, I’ll keep a position. My stop is under the breakout level. This only gives me about a 1.5:1 reward to risk, but I feel the probability of the setup is strong.
Concerns: I entered at the top half of the stochastic indicator–the pullback did not reach overbought levels. If today is the start of a deeper market pullback, it may bring this stock down with it.