Determining the appropriate take profit and stop-loss levels for Dada Nexus Limited (DADA) involves analyzing various technical indicators and considering market sentiment. Here's a suggested approach:
- Take Profit:
- Given the average price target of $1.93 and the current closing price of $1.81, you may consider setting a take profit level slightly above the average price target, such as $2.00 or $2.1012. This would allow for a reasonable profit margin while still capturing potential upside.
- If you prefer a more conservative approach, you could set a take profit level at the 50-Day SMA of $1.5667, which is a commonly used level for take profits.
- Stop-Loss:
- Considering the recent price volatility and the 12.03% price volatility over the last 30 days3, you may want to set a stop-loss level that provides a cushion against potential downside.
- A stop-loss level below the current support level of $1.754 could be prudent, depending on your risk tolerance. For instance, you might set a stop-loss at $1.70 or $1.65 to limit potential losses in a downward trend.
- Alternatively, you could use a stop-loss based on a percentage decline, such as 5% or 10%, from your entry price to manage risk.
Remember, these levels are suggestions and should be adjusted based on your individual risk tolerance, investment goals, and market analysis. It's also important to monitor the stock's performance and be prepared to adjust your take profit and stop-loss levels as needed.
11/8/2024 07:15am
