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Double Bottom

$VRTX showing multiple signs of continuation!Notes: * Very strong up trend on all time frames * Great earnings track record since 2017 * Breaking out of a ~4 month base with higher than average volume * Printed a pocket pivot * And offering an early entry relative to its 50 day line * Breaking above a historical resistance of $290.48 with volume once again (Third time's the lucky charm? ;)) * Formed a relatively flat handle to the double bottom * Offering a low risk entry Technicals: Sector: Healthcare - Biotechnology Relative Strength vs. Sector: 1.32 Relative Strength vs. SP500: 1.16 U/D Ratio: 1.97 Base Depth: 24.6% Distance from breakout buy point: 0.03% Volume 8.7% above its 15 day avg. Trade Idea: * You can enter now as it's just breaking out of its double bottom base with higher than average volume and it printed a pocket pivot * If you're looking for a better entry you can look for one around the 290.5 area as that should hold as support * One thing to keep in mind is that there are two more historical areas of resistance that will come in the way before we hit the target * Look for confirming price action around those levels before adding to the position * Or, if we see lots of rejection around those levels, consider exiting the position earlier * This stock usually has local tops when the price closes around 11.93% above its 50 EMA * Consider selling into strength if the price closes 11.73% to 12.13% (or higher) above its 50 EMA * The last closing price is 6.9% away from its 50 EMA
NASDAQ:VRTXLong
by HaseebKhan_90
AUD/USD Double Bottom Pattern On The 4-Hour ChartHi Traders, I hope you are all doing well today. It is Monday and the start of a brand new week. Let's smash those trades this week! Today I am looking at AUD/USD on the 4-hour time frame. We have an interesting double-bottom pattern playing out. I say interesting because the second bottom of the pattern wicked quite a bit lower than the first peak. Usually, I wouldn’t call that a double bottom but because of the clear divergence we see across the MACD, it enticed me enough to wait for an entry on this setup. Notice how the histogram and the MA lines across the MACD are both sloping upwards. This indicates true divergence as we can see that the sellers or the bears have been weakening, so we were waiting for the bulls to come back in and take control. I have highlighted the neckline in yellow. I wanted to see a break and close above this yellow neckline zone, which we clearly can see. Now I am waiting for a retrace back into the neckline to confirm that this area has been flipped from resistance to support. My long entry will be triggered once we see that retrace. I have used the trend-based fib extension to find my two targets. Notice on the chart how these two areas line up perfectly with previous areas of support and resistance. Target one is around the 0.6915 price level and target two is around the 0.699 price level. Remember, depending where you place your entry and your stop will result in your risk to reward fluctuating. I always aim for a minimum of one to two risk to reward. If we can get more than that’s great! But make sure your risk management is carefully monitored. Don’t risk more than needed. There are always further opportunities. So, let's see what happens with this one. As usual, I like to see lower bearish volume to accompany the retrace, otherwise, this bullish move could potentially just be a fakeout and we do not want to be caught on the wrong side of the trend. We are seeing some green today across the forex board so let's see if we can capitalize on these moves. I usually like to wait for Tuesday before jumping into any positions, but that clear divergence across the MACD interests me. However, if that retrace does not happen then so be it. We move on to the next one. Trade safe out there! Enjoy your Monday! The Vortex Trader
Long
by TheVortexTrader
$CEIX Broke out of its base since 2018! Can it go higher?Notes: * Very strong up trend since October 2020 * Not the best earnings track record * Broke out of its base that was forming since 2018 with higher than average monthly volume * Retested that broken resistance several times on the monthly chart and bounced bullishly * Formed a double bottom in the past couple of months Technicals: Sector: Energy - Thermal Coal Relative Strength vs. Sector: 2.65 Relative Strength vs. SP500: 2.41 U/D Ratio: 1.17 Base Depth: 37.71% Distance from breakout buy point: -5.22% Volume 54.62% above its 15 day avg. Trade Idea: * Yesterdays session was quite bullish and isn't offering a low risk entry. * Since the volume was high, we might be able to get in at yesterdays closing price and it may just move higher from here * If you're looking for a better entry, the 54.04 area seems like a nice entry as it's a level of resistance that should act as support moving forward * This stock usually has local tops when the price closes around 36.06% above its 50 EMA * Consider selling into strength if the price closes 35.86% to 36.26% (or higher) above the 50 EMA... * The last closing price is 14.44% away from its 50 EMA
NYSE:CEIXLong
by HaseebKhan_90
7
Sterling tools near its supply zoneStertools has been on a downtrend since 2018. The stock has made a double bottom and currently at the neck line which is very strong supply zone of 250rs-260rs which coincides with 38.2% fib level. If the stock manages to give a weekly closing above 250rs and sustains the same in the following week, we might see a big upmove in this stock. Keep this stock in radar for a good positional trade since volumes have increased in previous few weeks
NSE:STERTOOLSLong
by chartistamey
BTC Ascending triangle or a bear flag breakout?I'm looking at BTC chart in multi- timeframe. BTC broke symmetrical triangle, formed an ascending triangle but rejected at the resistance level 22.5-22.8K. Today BTC retested symmetrical triangle trendline and can bounce, or it can touch the lower slope of ascending triangle before major bounce. There is a warning sign as well. BTC has formed a gigantic bear flag with the target 11K. If it breaks down the blue parallel channel or Ascending triangle , A bear flag mode will be activated and more likely it will dump to cause a final capitulation. I give 75% probability to a scenario A and 25% -B based on my previous published analysis. You can also check them to understand why I'm more bullish than bearish.
Long
by ergal91