EXAS Is On The Move As It Breaks Out of Its Base
I'm seeing a lot more cups (#1 on the chart above) with handles in the charts I look at every day, and EXAS was one of them. This cup corrected the price by 21% while the second contraction narrowed the trading range to 10%.
The handle of the cup consolidated into a falling wedge (yellow lines) with volume that pulled in (#2) as the price action did.
EXAS was looking strong enough on this breakout (#3) for me to open a position. It broke out with very good volume but it wasn't a huge surge. For the next few days the volume stayed about the same so that's a good sign.
It did end up peaking over its all time high before falling back a bit, but it came out the next day to test it again while closing near the top of its trading range for the day. So far things are going according to plan, but just in case I do have a stop loss set 10% below my entry point.
You can see my thought process in the tweets below as I deliberated over buying.
IF $EXAS does not hit my price target by the end of the day I may have to reassess my rules for these situations. Today's breakout for $EXAS looks similar to yesterday's for $PRLB (which I didn't go in on) and $PRLB followed up strong today.— Scott Jenkins (@scottjenkins) December 22, 2020
I was waiting for it to break over its all time high before purchasing but I had missed out on a couple other good breakouts for the same reason. In the end I chose to buy because it had broken well above the peak of the last contraction.
When I reread my rules for trading they actually state to buy as it breaks 1% over the peak of the last contraction. For some reason when the peak of the last contraction was near the all time high I had been waiting for the price to break the all time high. I followed my rules to the letter by purchasing when I did, oddly enough I was breaking them by waiting and it was costing me.
Dec. 30, 2020
This is a brief explanation of what I saw in TTWO that caused me to increase my position today.
Dec. 27, 2020
The AMZN chart looks a heck of a lot like TSLA just before it exploded into the $600 range.
Dec. 23, 2020
Here's a quick explanation about why I opened a position in EXAS as it broke out of its' base.
Dec. 15, 2020
Crowdstrike just had amazing earnings and their stock gapped up because of it. We are just off the all time high set just a few days back.
Dec. 14, 2020
Paypal's breakout looked strong today. It finished the day at 98% of it's 30 day volume average and rose just over 3%. The volume seemed to be trending higher than 98% earlier in the day but it started to trail off. I was a little dissapointed in that but the trade still looks promising.