REVIEW $ELF STOPPED OUT

Here is a review of my stopped out trade review on $ELF with a 1:3 risk to reward thesis.

Bearish


Fundamental
- High PE
- Negative PEG
- Negative P/ FCF
- One must note beauty and cosmetic related products are always top of the chart in the online business / Lazada / Shopee

Technical
- Price broke down 2 years upward trend line with a long wick rejected
- Momentum theory indicator was seen under the water
- Price further broke down forming a M top / channel


Entry idea
- Entry idea was based on few confluences
- Rejection / retest of the trend line
- Rejection on 0.5 fibo
- Price below 200 MA

Stop loss set on 0.786 fibo level which within 1% of my trading capital and got stopped out.

Trading performance should always be based on how well you trade on the outcome of a single trade.

Cheers and happy weekend to all traders!