Another stock from IT Sector (XIJ) and tracking along nicely one may add in it’s major uptrend.
At times getting involved in overbought conditions ( my measure of overbought is the upper resistance line of the trend channel.) increases risk therefore reduces position size.
Pullbacks may create a lower risk entry with greater position size, if a trade is taken and if it works out off course. For this simple reason, we mark our potential support levels and stalk the instrument in analysis. That is what I have done with PRO. The Blue trend Channel is the long term trend and the Orange channel is the medium term trend. Dashed Orange price support is the medium term daily support and the dashed Blue is the long term daily support. Then I may employ a simple pivot point reversal as a entry at those support levels if tested.
Daily PRO Chart shown.
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