Jul 072010
- Stock: Compania de Minas Buenaventura SA (BVN)
- Price: 36.91
- Trend: Higher (based on the price in relation to the Ichimoku Clouds indicator)
- 2-day RSI: 3.46 (below 5 is oversold)
- Risk: 2% of account equity
- 20-day Average True Range (ATR): 1.318
- 3 times ATR: 3.95
- Target price: 40.86 (three times ATR plus the current price of 36.91)
- Stop loss: 32.96 (current price of 36.91 minus 3 times ATR)
- Position size: 18.67% (2% of equity risk divided by the 3 times ATR times the price)
Wednesday’s Trading Strategy
Buy BVN at 36.91 with a target price of 40.86 and an initial trailing stop of 32.96. If the stock moves higher but has not reached the target price, the stop loss should be raised beneath the highest closing price.
Is this a Magic Formula stock?
BVN is not. QCOR has been in the past, although it doesn’t seem to be right now.