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Break out trading is a high risk-high reward setup and I dont like the word high risk. As a trader, only thing on my control is the risk that i am willing to take to know if a trade will work. The reward is a factor of luck and luck is not a very dependable factor.
I am a big fan of momentum and Support/ resistance. They are my only deciding factor while trading. As they help in deciding the target (exit) and stoploss (risk per trade). Entry is not all that important compared to trade location on the bigger picture.
My stoploss for a short trade would be 2% above the 71 mark as thats where the supply came. The demand line at 64 appears to be broken, but momentum (RSI ) is not very encouraging. Momentum always precedes price on a break out. Here it's lagging. I'm more inclined towards calling it a false break down.
64.25 is the high made on the previous session and if i get a close above this mark, then its a clean contra buy for me with sl at 62.15, the LOD of last session.
67.25 is the monthly average trading value and
71.77 to 68.73 is the bi monthly value.
They will be my first target.
That's my opinion and i could be wrong. And i am wrong 51% of the time....!