Originally Posted by Hog's Gone Fishin:
Looks like its blowing up premarket
I might have to monitor that, I've seen where it goes up initially premarket then comes down some after the open. People are selling to make money off the gains, one might wait for a dip. [Reply]
Originally Posted by petegz28:
I wouldn't call that a wedge but that's me. What it is though is "filling the gap" which stocks have a strong tendency to do. That being said it is a good entry point.
Also from a purely technical analysis perspective your "pivot point" isn't a true pivot point. Pivot points are calculated for day trading based on the previous day's OHLC.
What you have highlighted is a classic example of resistance becoming support, assuming it holds. Again, you are right about the approach but I think your verbiage is a bit off is all.
All correct. The 30 minute chart makes it look more similar to a falling wedge but it’s still a stretch. Is there a name for this?
And yes, I’m being generous with pivot point too. Didn’t know how else to show/name a “change” in direction point. Trying to provide some basic guidance for these meme stock bros in here. [Reply]
Originally Posted by lewdog:
All correct. The 30 minute chart makes it look more similar to a falling wedge but it’s still a stretch. Is there a name for this?
And yes, I’m being generous with pivot point too. Didn’t know how else to show/name a “change” in direction point. Trying to provide some basic guidance for these meme stock bros in here.
If I had to assign a pattern to it I would call it a flag because it is a fairly symmetrical pattern. I mean I guess depending on how you wanted to draw the lines it could be a wedge. But , imo, it's such a sharp pullback I would just call it a re-tracement and not overthink it too much.
I tend to not try to force a particular name to the proposed pattern because when it comes to trend line and support\resistance analysis it can all get very subjective. The important thing is to recognize a consolidation pattern in general.
But this particular chart is almost one for the text books if it holds. You have some classic teaching examples.
Breakout above resistance on the 5th attempt with high volume no less
Gap to the upside
Re-filling the gap
Returning to the resistance line which has now become support (assuming it holds)
That's a classic chart to teach many aspects of chart reading right there. [Reply]
Stock did not confirm upward trend so nothing was initiated today. We had price target of 58.20 and it only got to 58.16 and then sold off. This is how to trade on momentum. We keep it on our watchlist.
If you initiated a trade on this today, you’d just be guessing. Hope this helps show how/when to initiates trades for improved success.
I don’t mind taking some requests if anyone has a question on a chart. I could at least show you what I look for and others like Pete can also share input. There’s some knowledgeable guys here and it’s all very interesting to see technique. [Reply]
