* Good earnings
* Very strong uptrend since the 2020 crash
* High 3-month relative strength in the Basic Materials sector
* Breaking out of a ~9 month base with higher than average volume
* Created a double bottom during the ~9 month consolidation
* Second half of the double bottom can be considered a cup and handle pattern as well
* Currently consolidating right above the broken resistance; creating a new support
* Maximum probable ROI is ~21.97% if the trade goes in our favor
Trade Idea:
* If you're looking for a trade during these market conditions you should be ready to face volatility and trades going against you.
* That being said, if you are looking to enter, now's a great time to enter this stock as it's consolidating just above the broken resistance and is offering a great risk/return ratio
* If you're looking for a discount you have a few options
1) You can look for an entry at the resistance turned support level of $159.90
2) If it breaks and closes below that, you can look for an entry around the $158 area as that should serve as short term support
3) If it breaks and closes below $158, you can look for an entry near the $155.50 area as that should serve as a stronger support level.
Caution:
* Again, the current market conditions are uncertain and if you are going in, trade with caution.
* A daily close below $155.50 would negate the idea.
* Very strong uptrend since the 2020 crash
* High 3-month relative strength in the Basic Materials sector
* Breaking out of a ~9 month base with higher than average volume
* Created a double bottom during the ~9 month consolidation
* Second half of the double bottom can be considered a cup and handle pattern as well
* Currently consolidating right above the broken resistance; creating a new support
* Maximum probable ROI is ~21.97% if the trade goes in our favor
Trade Idea:
* If you're looking for a trade during these market conditions you should be ready to face volatility and trades going against you.
* That being said, if you are looking to enter, now's a great time to enter this stock as it's consolidating just above the broken resistance and is offering a great risk/return ratio
* If you're looking for a discount you have a few options
1) You can look for an entry at the resistance turned support level of $159.90
2) If it breaks and closes below that, you can look for an entry around the $158 area as that should serve as short term support
3) If it breaks and closes below $158, you can look for an entry near the $155.50 area as that should serve as a stronger support level.
Caution:
* Again, the current market conditions are uncertain and if you are going in, trade with caution.
* A daily close below $155.50 would negate the idea.