Looking for a head and shoulders pattern to form below the middle of the up channel drawn
(1) is the shoulders of the pattern
(2) is the head of the pattern
Technically price is forever bullish above the strong down channel drawn, price just needs to finish this formation
Asbury Automotive Group Inc. operates as an automotive retailer operating franchises and dealership locations in US. The Company offers new and used vehicles, as well as financing and insurance, vehicle maintenance and repair services, replacement parts, and service contracts, also provides dealership for luxury and mid-line import brands.
My trade levels
Entry:...
Technical:
✅ reached and respected horizontal support
✅ consistent pattern since Feb. 22
⛔️ CTL not broken yet - could wait for break before entering
✅ Earnings (higher volatility) in about a month - previous bounces reached upper resistance in under 30 days, so should be out of the trade before Earnings announcement on Oct. 27
Market factors:
⛔️✅ Car Retailer...
First time creating a chart here but just wanted to publish because why not!
We've seen an exponential rise over the last year with some amazing gains, and it's no surprise that a correction was looming.
ABG's balance sheets have looked absolutely incredible and they're continuing to impress with their numbers. Considering that they have no market competitors...
Accumulation around 104. Gained 400%+ in 1 year, 0.o car dealership. Are they selling TSLA or something? RSI oversold since July 2020. EPS grew dramatically from 2020-2021, just another bs cuz rev is still growing at a normal rate.
Will be interesting for sure. The monthly chart is almost 90 degree vertical, pfft.
Beat earnings ,is oversold,is on support right now it sells at 99 so for longer term aim is 120 sl somewhere at 94.8 but il wait a bit to avoid ay irratic movement like the last earnings report.
Reasons for trade
1.Lower end of channel
2.Previous resistance may act as support.
3.50 EMA that the stock usually retraces
4.Stockasticks oversold.
R/R is almost 3-1 aim for 119 with SL at 98.5
will adjust accordingly with the open.Price may move lower to 100-101 but its still ok to open here for me.No holding through earnings.
