Ichimoku Canadian Stock Trade of the Week 10-07-13, DUNDEE PRECIOUS METALS INC. SELL

On Oct. 07, 2013, we received an Ichimoku 3 multiple time frame Sell email alert on DUNDEE PRECIOUS METALS INC.  for the Canadian Stock market.   The email is shown below.

There was an email alert for a break out of the stock on the bearish side. This breakout setup was emailed through the automated email alert system, as shown above. As soon as the price broke on the bearish side, it had a strong momentum supporting it.    There was an ideal opportunity to take a break out trade.    The entry was at $ 5.28.  Initial stop of  $5.47 and a target of $4.73 was set.  As soon as the price started to move in the direction of the trade, a trailing stop method was applied based on proprietary Ichimoku Strategy. The current stop has been marked at $ 4.85. Current exit has been locked in, which means, if the price retraces back from this point on wards, we are sure to get a profit of  $ 0.43 per share, giving us a sure Risk : Reward ratio of 1 : 2.3. If the price continues further in the direction, then the trade will be executed on the previously set target, giving us a net profit of $ 0.55 per share and at that time the Risk : Reward ratio would be 1 : 2.9. Here is the chart setup:

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About the Author Vinesh Midha