Note: This post is written for my personal trading record purpose only, so this should not be taken as any form of investment advice or guidance to follow. Discussion is welcome, while you must do your own research for our own risks.
Discussion
MP Materials Corp ($MP) experienced continuous downtrend after it topped in early April 2022. In early May 2024, MP successfully cleared the 20-week moving average with an extended pocket pivot on 14th May 2024, which might mark an institution buying.
However, the pocket pivot breakout did not follow through and failed immediately on 14th May 2024, with a volume higher than average.
After around a week of selling and consolidation, MP experienced a volume dry-up and closed above 20MA on 24th May 2024, which might indicate a low selling pressure and support at the 20MA.
Accordingly, an initial position is setup using the 20MA – 2% as the tight selling guide with a maximum risk exposure up to -$320.
Setup Summary
| Date | Ticker | Action | Reference | Reference Price | Justification | Position | Price | Size | Stop Loss | Risk Tolerance | Risk Exposure% | Risk Exposure$ |
| 28/5/2024 | MP | Entry | 20MA | $17.00 | Volume contract at 20MA T-1 | 800 | $17.05 | 13,640 | 16.65 | 20MA-2% | -2.35% | -$320.00 |
Chart
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