LSE:DXNS – (Dixons Retail PLC)

Following up from my post LSE:DXNS on 11th Jan – we had the upside breakout much earlier than anticipated (4 days later) and as of Friday confirmed an ascending triangle by closing just above the 15.5 resistance level and OBV.
The original trade idea came with a breakaway gap and broke the descending trendline from May 2010.

ENTRY:
Above Friday’s candle at 15.8
Or buy at open to avoid any gaps (up or dwn)
STOP:
Beneath swing lows (either 14.2 or 13.8)
TARGET:
– Initial targeting the Triangle projection around 17.9.
– If all goes well a 2nd target could be the last major swing high around 20 (also a historical support/resistance level)
– P&F projects interim target around 16.5 (not great r:r) and a longer-term target around 27.5 (which could take some time…)
RESISTANCE:
– Tip of “Shooting Star” at 16 (a close above here confirms a double top continuation P&F pattern)
– Please be aware of a potential resistance around 17 from the descending trendline from May 2008
– Although the daily Ichimoku chart looks very bullish we are currently within KUMO on the weekly. The weekly chart is still very bearish but SENKOU SPAN-B still allows for potential gains between 17-20 (depending on time taken) before the cloud could act as resistance.
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