IPO’s first cup handle for potential breakout (LONG READ , not sorry 😂)
$Yatsen(YSG.US$
So the chart below is an interesting and exciting chart!!! As you can see to the left, this stock hit its initial IPO high, trading at 21, (blue line) in November. Soon after starts falling to a low of 15.17 by mid December, bounces around and starts moving higher on December 29th and starts moving up, forming the right side of the cup. Then on January 14th, it reaches 21 again, that is what is called a breakout point, or pivot. This is the buy area for a stock. So the stock tried to breakout over 21, and for some reason, failed to breakout. It happens more than not. This stock tried for two days. 14th and 15th. So now what? Well it will form a handle, handle could be a 5-10 percent drop. So on the 20th, it gets up to 20.50 (purple line), that is your next buy opportunity, that will form the handle on the cup, and go for another breakout, which usually are successful. So why not just buy now at 19, right? WRONG!!! Because right now there is no guarantee it will get up to 20.50 and might just form a double top and continue to go down. The reason you wait for 20.50 is because its giving you assurance that the stock is rising, moving towards the breakout. You could buy today at 19, and it could keep sliding making a deeper handle and wasting your time and money waiting for it to come back to 20.50, you say well im even lets get out and the next day it hits 27 and your yelling at yourself. Just buying dips on a whim is not DD or smart. You not only have to know technicals, you must know fundametals too. Read Study Research
Thanks for reading and hope it helps. It works for all stocks
So the chart below is an interesting and exciting chart!!! As you can see to the left, this stock hit its initial IPO high, trading at 21, (blue line) in November. Soon after starts falling to a low of 15.17 by mid December, bounces around and starts moving higher on December 29th and starts moving up, forming the right side of the cup. Then on January 14th, it reaches 21 again, that is what is called a breakout point, or pivot. This is the buy area for a stock. So the stock tried to breakout over 21, and for some reason, failed to breakout. It happens more than not. This stock tried for two days. 14th and 15th. So now what? Well it will form a handle, handle could be a 5-10 percent drop. So on the 20th, it gets up to 20.50 (purple line), that is your next buy opportunity, that will form the handle on the cup, and go for another breakout, which usually are successful. So why not just buy now at 19, right? WRONG!!! Because right now there is no guarantee it will get up to 20.50 and might just form a double top and continue to go down. The reason you wait for 20.50 is because its giving you assurance that the stock is rising, moving towards the breakout. You could buy today at 19, and it could keep sliding making a deeper handle and wasting your time and money waiting for it to come back to 20.50, you say well im even lets get out and the next day it hits 27 and your yelling at yourself. Just buying dips on a whim is not DD or smart. You not only have to know technicals, you must know fundametals too. Read Study Research
Thanks for reading and hope it helps. It works for all stocks
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Never too late : Thanks Pj.. put this to watch list...
ConchTraderOP Never too late: Your very welcome, hope it breaksout, if not put a 8% stop loss on it and move to next stock. Happy Trading!!!
Never too late ConchTraderOP: Thank you for the advice..
ConchTraderOP : Also, I want to note, it’s always important to look at volume for the day. If you see increasing volume(usually above 200MAV), and moving up that’s a good sign. Right now, not too much volume, so really not moving much. I think more users should look at volume more when your betting on a stock to rise. Without it, it won’t stay up there too long. Great example is the run $$Futu Holdings Ltd (FUTU.US)$ is making look at the run up and also the volume of trading.
Temple Street-操盘手 : I have some insg options instea. https://www.youtube.com/channel/UC4NkpBEJz3TAFxxklGeCY3Q/videos. This Chinese guy is awsome.
Stock Li : awesome pick, will wait for the pull back
ConchTraderOP : Soon as $$Pinterest (PINS.US)$ pops, I’m in. This is going to run
ConchTraderOP : Another winner winner