‘Tis the week before Christmas and central bankers are preparing the gift of higher debt repayments for anxious parents across the globe, writes Ian Murphy of MurphyTrading.com.
The Federal Reserve will announce its latest rate decision on Wednesday followed by the European Central Bank and Bank of England on Thursday. All three are expected to hike by 0.5%, and anything else will likely provoke a volatile market response—be prepared!
During Thursday’s webinar a query came in about recent activity on the FBD daily swing trade strategy, so as they say in the best cookery programs, ‘Here’s one I prepared earlier. Based in Dallas, CSW Industrials, Inc. (CSWI) manufactures chemical coatings, sealants, and adhesives. They reported record earnings on Nov third, and the stock triggered on Friday. The volume is low at 50,000 shares per day, but the high price of $116 and an average ATR% of 3.35% provide enough liquidity and realized volatility to make the stock attractive.
All the required signals are present, the ATR channel divergence could be better, but it’s ok. The initial protective stop and targets are shown above.
Learn more about Ian Murphy at MurphyTrading.com.
