NASDAQ:AVGO
The perfect double top with a nice "V" shape, the neck breakout validating the double top, found support @117.17$, pull back 61.8% forging a nice 2618 short trade setup...
AB=CD pattern ends @107.10$ and from there we have a cluster zone, between 107.10$ and 101.38$ as the next probable stop before completing the Shark.
THE SHARK:
Point B:
61.8%...
After earning, the price spiked up to hit the highest same as after the 5/25/2015 earning, bias thought it maybe a similar pattern, may softly drop down at the support range 140.5 - 141 which about the 23.6% Fibo of the latest uptrend, and may touch down at 38.2% Fibo too.
Plan to short if the next day price open below 144.5 with bearish candle, stop loss at 146.5.
AVGO has been a great stock this is moving higher on breakout of flag, potential to run the same distance prior to the flag good risk management as this is not a weekly pattern
Friends,
Using basic analysis, and trading psychology, we're able to get a nice long out of the trading range.
The psychology comes into this trade where we had the previous large morning star signal, which failed. BUT was not violated. This tells me there is still bullish conviction in this trade. And some technical analysis has proven that.
Kind regards.
Tom
4-22 Chart wise its all about an upside crossover
of the green line that? ACTUALLY sticks. In the
meantime? The blue lines are support zones in
the event of failure to engage.
Feel free to follow on TWTR at
@AmazingPatterns
For informational and educational
purposes only, these are not
recommendations, trade at your own risk.
