What is buying on a dip? Part 2

As a follow up to my last post lets take a look at the dip as it occurred a few days ago. As can be seen price came down to the slower band of moving averages which acted as support and which includes the group of exponentially moving averages 30 and above (EMA 30, 35, 40, 45, 50, and 60). The faster group of exponentially moving averages (EMA 3, 5, 10, 12, and 15) were all above the slower group and this is by definition an uptrend. When price came down to touch the lower band this was a buying opportunity. I have a moving average envelope set at 2% distance away from the EMA 22 which is an approximate middle space between the EMA 15 and 30. This lower line can be used as a stop loss point if touched limiting loss to less than 2% (less than $200 on a $10,000 trade). We can raise our prior stop to below this last low locking in some profit and move this purchase to break even. Click on chart to enlarge.