A bounce back swing trade idea

Take a look at this chart. This is Abb Ltd. A Switzerland & Sweden based engineering company. Little exposure to the US markets.

If your daring and want a trade to take advantage of a possible bounce then ABB has a good risk to reward ratio because the stop loss is very clearly defined. The stop loss is the support line / 50 day moving average.

Trading anything today is risky. Especially with the European markets being down and the Asian stock were down big at the close this morning. But I may enter a small (1/2 normal swing trade funds) if the buy point is met.

Remember that any gains today could be quickly cashed in by others wanting to cash out. So ABB could start out well and then sharks waiting above will take the cash and run and bring it back down. That is the added risk with the market situation.

Live Chart