Short-Term Swing Trade:QBE:ASX Insurance Post-New Caledonia News

Trading Idea: QBE Insurance (ASX)

Technical Analysis:

QBE Insurance, listed on the ASX, has experienced a price drop following recent news from New Caledonia. Despite this, the stock remains in an overall uptrend and exhibits strong fundamentals, making it a potential candidate for a mean reversion trade. Stock has generated Bullish candle stick pattern with RSI breaking out and rising

Entry:

Current Market Price (CMP): $17.75 to $18.00

Stop Loss:

Lower of previous candle: $17.40 to $17.42

Target:

If the price crosses the 9 EMA or reaches $18.45

Risk Reward:

Ratio: 1:2 to 1:2.5

Allocation:

Up to 5-6% of your capital

Type:

Short term swing trade (1-2 weeks)

Conclusion:
Given the recent price dip and the strong overall uptrend of QBE Insurance, this setup offers a favorable risk-reward ratio for a short-term swing trade. Consider entering within the specified range and manage risk with the defined stop loss and target levels.