Contents:
- Introduction
- Hybrid 10-Step Trading Strategy Review
- Final Trade Recommendation
- Next Steps
Introduction
Premiere Island Power REIT (PREIT) has shown impressive growth over the past year, maintaining an uptrend supported by rising price action and increasing volume. As of January 31, 2025, the stock closed at 2.23, with strong technical positioning above the 20-MA (1.78), suggesting a bullish continuation if key resistance levels are cleared.
Trade Details:
- Stock: Premiere Island Power REIT (PREIT)
- Exchange: PSE
- Timeframe: Monthly
- Date: January 31, 2025
- Closing Price: 2.23
- High: 2.25
- Low: 2.06
- 20-MA (Short-Term Trend): 1.78
- 200-MA (Long-Term Trend): Not yet available
Key Pullback Levels:
- 100% Pullback: 2.40 (Major resistance zone)
- 75% Pullback: 2.30 (Short-term resistance)
- 50% Pullback: 2.15 (Potential support if retracement occurs)
- 0% Pullback: 1.78 (Long-term support near 20-MA)
This stock price review follows our Hybrid 10-Step Trading Strategy to ensure a structured and comprehensive assessment.
Premiere Island Power REIT (PREIT) Monthly Chart as of January 31, 2025
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
- The long-term trend is bullish, with price continuing to hold above the 20-MA (1.78).
- Higher highs and higher lows confirm trend continuation, but resistance at 2.30 - 2.40 could trigger a pullback.
- Price remains near recent highs, indicating strong buyer interest.
✅ Market State: Uptrend with resistance ahead.
🛑 Decision: HOLD – Wait for a decisive breakout above 2.30.
Step 2: Price Position & Retracement Zones
- Positive Position: Price is well above the 20-MA, signaling sustained strength.
- Retracement Zone: 2.15 - 2.20 could act as a key support area if price retraces.
✅ Favorable for trend continuation, but risk of a pullback remains.
🛑 Decision: HOLD – No aggressive buying until confirmation above 2.30.
Step 3: Power Bars, Breakout Signals & Volume Confirmation
- January closed with a small-bodied green candle, suggesting consolidation.
- Volume remains healthy, indicating continued interest in the stock.
✅ Buying pressure remains intact, but no breakout yet.
🛑 Decision: WAIT – A strong push above 2.30 is needed for a clear move.
Step 4: Entry Confirmation Based on Technical Signals
- BUY trade executed at 2.23 (1,000 shares on January 31) was placed near short-term resistance.
- A breakout above 2.30 could trigger momentum buying.
🛑 Decision: WAIT – No additional entries until confirmation.
Step 5: Stop-Loss Positioning & Risk Management
- Stop-loss should be placed below 2.10 to limit downside risk.
- Risk remains moderate as long as the price stays above 2.15.
✅ Defined risk parameters keep the trade structured.
🛑 Decision: HOLD – Manage stop-loss carefully.
Step 6: Color Change Signals for Additional Confirmation
- January’s candle shows consolidation rather than momentum, requiring additional confirmation.
🛑 Decision: WAIT – Look for further strength in February.
Step 7: Profit-Taking Strategies with Tactical Exits
- Target 2.40 - 2.50 for potential exits if momentum strengthens.
- Monitor for any signs of exhaustion near resistance.
✅ Profits should be locked in at key resistance levels.
🛑 Decision: HOLD – No immediate exits required.
Step 8: Potential Re-Entry Zones
- Best re-entry zone is near 2.15 if price pulls back.
✅ Consider adding on dips above 2.15.
🛑 Decision: WAIT – No new entries unless price stabilizes.
Step 9: Tactical Position Adjustments
- BUY trade at 2.23 is a reasonable entry, but further confirmation is needed.
- Additional positions should be considered only if momentum continues above 2.30.
🛑 Decision: HOLD – Monitor trend before adding.
Step 10: Counter-Trend Trading Considerations
- No counter-trend trade needed as the stock remains in an uptrend.
🛑 Decision: HOLD – No counter-trend action required.
Final Trade Recommendation
✅ Final Trade Recommendation: HOLD
✅ Recommendation: Maintain the position at 2.23, but avoid adding aggressively until a breakout above 2.30 is confirmed.
✅ Risk Management: Stop-loss below 2.10 to protect against downside risk.
✅ Profit-Taking Strategy: Target 2.40 - 2.50 for gradual exits upon breakout.
✅ Position Size Strategy: Hold the current position and consider adding if price stabilizes above 2.15 with volume confirmation.
Next Steps
🔹 Short-term traders → Wait for a breakout above 2.30 before adding positions.
🔹 Long-term investors → Hold positions for dividends and trend continuation.
🔹 Existing holders → Watch the 2.15 level for support confirmation.
🚨 Final Thought: PREIT is consolidating after strong gains. A confirmed breakout above 2.30 is needed for trend continuation. 🚨
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
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