RMCF trade ideas
Long $RMCFLooking interesting and setting up for a pullback opportunity after a pivot breakout on high volume.
Parallel channelsEarlier I traded a channel much like this one and lost. Zooming out you can see that the channel I've drawn in blue is really just a subset of a wider channel.
Now that today's low point has appeared, you can see that the blue channel is in fact the lower half of a wider channel.
To avoid this mistake:
Look for a swing low below the current channel. If it exists, draw a line from that swing low parallel to the known channel. Now you can use that line when setting up trades.
The same idea could be applied to the top side of the channel as well.
$RMCF Bullish hourly chartWho doesn't like chocolate?
Great looking chart on the hourly.
Please click a like if you like what you see on our chart.
$RMCF Inv. H&S, Wedge & moreTop: right shoulder of an Inverse Head and Shoulder pattern forming for the least year. The right shoulder is taking the form of the wedge, consistently respecting the rising lower trendline (to the tick), and roughly respecting the larger parallel channel midline, which acted as important support in the left shoulder prior to the breakdown.
Bottom: all of the action in the past year is in the context of what appears to be a 17 year double bottom. The Jan 2003 low was $2.30, the Nov 2020 low was $2.58
Conclusion:
The way I see it, RMCF made a long term double bottom. I see enough price action symmetry in the last year that I am confident an Inv. H&S is taking place. With where the stock is in the right shoulder wedge, I would know my thesis is wrong if the stock closes back below the wedge, which would be $4.23 (the low of the 1/29/21 candle)
Charting for a friend Hey guys,
Idk anything about this company but a buddy asked me to take a look at it. Looks pretty standard these days. It will get pulled up or down based on S&P.
RMCF - the Milky WayBeautiful uptrend as domestic food and restaurant stocks trend up during the China trade wars. Nice R/R. Nice bases with tight price action. Stop = $9.25 Target $10.50 In at $ 9.65
RMCF reaches its bottomFor more ideas visit mercuriusam.wordpress.com
Rocky Mountain Chocolate Factory Inc. finished yesterday’s session gapping up which should be a strong indication that the stock has bottomed at $10 level. For several weeks bears have had control over the price. However downtrend became slower since the MA ribbon has formed almost single line and has been finally broken up.
Historically the stock is inclined to break up from the MA confluence zones which should be another factor behind a strong bullish move.
