Contents:
Hybrid 10-Step Trading Strategy Review
Introduction
MREIT Inc. (PSE: MREIT) is under technical evaluation as of January 24, 2025, following the Hybrid 10-Step Trading Strategy. This analysis aims to determine potential trading opportunities based on trend structure, retracement levels, and key indicators.
MREIT Daily Chart Analysis – Buy or Sell Decision Using the Hybrid 10-Step Strategy
Trade Details
Stock Name and Ticker: MREIT Inc. (PSE: MREIT)
Timeframe: Daily Chart
Market Trend: Neutral to Slightly Bullish
Price Position: Above the 200-day MA (13.21) and near the 20-day MA (13.45)
Significant Support & Resistance Levels:
Support: 13.18 (0% Pullback), 13.21 (200-day MA)
Resistance: 13.61 (50% Bullish Reversal), 13.83 (75% Bullish Reversal), 14.04 (100% Pullback)
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context
MREIT is transitioning from a downtrend (marked by a descending trendline) to a consolidation phase.
The price is stabilizing above the 200-day MA, suggesting potential trend reversal.
Step 2: Assess Price Position & Retracement Levels
The stock is between key retracement levels:
50% Bullish Reversal at 13.61 is acting as immediate resistance.
0% Pullback at 13.18 serves as key support.
Step 3: Identify Power Bars & Retracement Strength
The recent price action shows a series of small-bodied candles, indicating a lack of strong momentum.
Volume is relatively low (91.3K), meaning no aggressive buying or selling is occurring.
Step 4: Entry with Confirmation from Both Strategies
A clear breakout above 13.61 (50% Bullish Reversal Level) with strong volume would be needed for a bullish entry.
A rejection at this level could confirm continued sideways movement.
Step 5: Tactical Stop-Loss Adjustments
Conservative traders can place a stop-loss slightly below 13.21 (200-day MA).
Aggressive traders may use 13.18 (0% Pullback Level) as a cut-off.
Step 6: Color Change as a Secondary Confirmation
The price is currently holding near the 20-day MA, with a slight bullish bias.
A strong green candle closing above 13.61 would confirm upside momentum.
Step 7: Profit-Taking Aligned with Retracement Targets
Short-term profit target: 13.83 (75% Bullish Reversal).
Extended target: 14.04 (100% Pullback Level).
Step 8: Re-Entry at Secondary Retracement Pullbacks
If the stock pulls back to the 20-day MA (13.45) and holds, it could offer a better re-entry opportunity.
Step 9: Tactical Position Management
A break below 13.18 signals weakness and could trigger a bearish move.
A sustained hold above 13.61 would suggest strength and a potential retest of 13.83.
Step 10: Counter-Trend Trades Only When Retracement Fails
If the price strongly rejects the 50% Bullish Reversal (13.61) with high volume, a short position may be considered.
Final Trade Assessment
Bullish Case: A breakout above 13.61, with volume support, could lead to a move toward 13.83 or even 14.04.
Bearish Case: A rejection at 13.61 or a breakdown below 13.21 (200-day MA) could signal downside risk.
Neutral Bias: Current sideways movement suggests waiting for confirmation before entering a trade.
Next Steps
Monitor for a breakout above 13.61 or a retest of 13.21.
Watch volume levels for confirmation.
Upcoming market events or broader index trends may impact price movement.
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
