RE: Update9 May 2025 20:31
Here's the last bit of the article as it is too big to copy with a couple of charts.
I want to increase my holding should the stock break out of its recent high at 118p.
Naturally, I want the stock to tighten up first. Buying into resistance after a share has rallied sharply could mean that I am liquidity for those who have made quick profits and are looking to exit.
Ideally, the stock will trend up close to the resistance zone, then trade sideways, allowing those profit takers out and a balance to be reset in the share price.
I always want volatility after the move, and not before it. Having a small trough before entering this means a tighter stop can be placed, giving greater upside as the position size can be increased.
However, Filtronic is a SETSqx stock, and so we need to be careful with liquidity. It is a market-maker-only share, and there is no electronic order book like on SETS, meaning there is only periodic daily trading rather than continuous trading.