Exelis’ market cap of just over 2 billion places the stock in the 18th place of the Aerospace and Defense industry. I have heard of Boeing or Lockheed, but I was totally ignorant of Exelis until XLS stock showed up in my watch list of the 3 Line Price Break system. The stock printed a green candle that surpassed the highs of the last 3 candles, completing a bullish signal. Can Exelis stock retest the all-time high at $12.90? For now, the question should be if XLS shares can climb above $12.
Although Three Line Price Break trading system has indicated a buy signal, it still needs confirmation with a new high today. Thus, an entry for a long trade should only be considered if XLS trades at $12.52 or higher. Proper risk management is advised by placing a stop loss either below Tuesday’s low or below the most recent support at $11.19. The trading strategy suggests placing a profit target at double the length of the signal’s candle ($0.26), or at $12.03. Another option is to trade half of the position at that point and use a trailing stop, in case the breakout pushes XLS share price to the resistance level at $12.80.
More risk-averse traders might consider placing the stop loss lower than $11, since round numbers usually provide stronger support levels.
Disclaimer: I have no positions in any stocks mentioned but plan to initiate a long entry at XLS within the next 48 hours.