Dec 11, 2022 09:46 AM 0 Answers
Member Since Dec 2022
Subscribed Subscribe Not subscribe

Curious your thoughts on this one? It looks like some very tight consolidation coming off a year long cup and handle. Strong VCP last 20 days or so as well. Good fundamentals and uptrend. Near it's pivot point.

Good buy on breakout volume pushing above pivot?


GREAT FIND!!  I like this stock, and it has a lot going for it right now.  Fundamentally, they reported 75% earnings and sales growth last quarter.  They have plenty of cash flow and adequate return on equity with little debt. Also, they are  in a strong industry group and has consolidated for nearly two years. The up/down volume is 1.6 and that shows us there are more buyers than sellers.

If you look at the weekly chart you can see the base on base pattern. The first base is 40 weeks and the second base is 52 weeks with 43% depth in the base. I usually like the depth to be less than 40% but in this market 34% is acceptable.  As you say the volume is drying up as it pulls backs. The relative strength line show sit is a strong stock. The buy point is $81.20.

The daily chart shows us the cup with handle pattern. The volume is drying up in the handle. The stock is currently trading at 2.1% above its 10ema and there may be another shakeout coming in that handle. This is worth taking a swing at with a small (less than 5%) position. IMHO!





0 Subscribers
Submit Answer
Please login to submit answer.
0 Answers
Sort By: