Ichimoku US Stock Trade of the week 5-10-13 : ITW Illinois Tool Works

On May 6, 2013, we received an Ichimoku 6 time frame Buy email alert on the stock ITW, Illinois Tool Works.  Here is the email alert:

Due to the market at the all time high’s, we are setting up a breakout trade on the 2h time frame.   The entry was 66.24, initial stop of 64.71, and a preserve mode value of 67.75.     Since the stock is at a all time high, there is no history of resistance value.   Therefore, we are have setup for a 1:1 reward/risk ratio.  When we enter the trade, it should become close to 3:1 reward/risk ratio i.e. 300%.   Here is the current chart setup:

Currently, we are in Preserve mode right now.   The stop is 67.50.   Since the current stop if above the entry, this is a FREE trade.   There is no more risk for this trade.  As as the trend continues to move higher, we will lock in more profits.  This trade is setup now to give us a residual income.

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About the Author Manesh Patel