Liking what I'm seeing with this stock. Price advanced heavily and we got a good size pullback forming what could become the base of a cup & handle. The hidden divergence in RSI and MACD gives me reason to believe a breakout is coming soon. Planning to keep an eye on this one this week for a potential opening inside the wedge. Target $210 by middle of March (25%).
Note
Waiting for price action to pullback and form a higher low before considering opening a position. Use the base of the cup as a stop loss.Trade active
Opened a position near the close today given the broader market sell off. That daily candle on Friday (and volume increasing at base of the cup) tells me that there's buyers at this level. Very possibly we'll see more selling tomorrow in the AM, which could get you closer to the bottom. I set my stop below the bowl and my target is $215.Note
2/17/21 - I broke my own rule yesterday when I took this trade against the tape (SPX). I got stopped out of this one early this AM, but I'm watching this one closely as the market re-orients itself over the next couple days. I still think its a solid setup, just needs a bit more time to brew.Note
I always wonder how often stocks break down because of bad timing? A modest market pullback when a bullish formation is exactly at the point it needs to bounce. At any rate, proof here that not all descending wedges are bullish!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.