This blog is about classical chart patterns in stocks. Just because I discuss a chart does not mean I traded it. I will never make trade recommendations, and you should not listen to those who do. We must develop our own style of interpreting and trading chart patterns. Traders have different entry and exit strategies, risk tolerances, and opinions about a chart set-up. Don't worry about what others are doing. Focus on protecting your capital while gaining market experience.
Friday, April 10, 2015
BAS: trying to breakout from a 5-month reversal rectangle?
First, the daily chart going back to November 2013:
The next chart focuses on the possible 5-month reversal rectangle:
Of course the breakout attempt can fail and this rectangle could turn into a continuation pattern that starts another downtrend. BAS is a volatile stock tied to a volatile commodity (oil) so a trader must be cautious and stick to rigid risk controls.
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