Today’s chart of the day is medical devices maker ARAY. The stock has pulled back to the 50 dma after a strong uptrend and is now oversold. This setup offers great reward to risk with a target near $10, entry around $9 and a stop around $8.75.
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With a 4: reward to risk ratio, you only need a 25 percent win rate to break even. All it takes is a 33% win rate to be profitable and if you are at 50 percent, you will kill it. This is my kind of trade.
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