Stack O’ Patterns
The Englehard Corp.
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PowerRating) is performing the type of action one likes
to see in a stock if you are a trader of momentum — multiple patterns. The stock
is stacking one potentially bullish signal on top of another on the way to
higher ground.
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The first move started with the break above the neckline of the
inverted head and shoulders back in January. While the stock did not exactly
rocket from there, it did not do anything wrong, either. Following a little
choppy, sideways-type of the congestion, it then thrusted higher off the 20-day
moving average, forming a second consolidation, and a mini double bottom. Take
note of how the first bottom is formed — a big gap to the downside, followed by
a straight run up to a close in the top of the range, and the second — a
reversal to low, then a rebound to a strong close, leaving a bullish Lizard tail
in its wake. Now, after another spike upward, it is pulling back from the latest
high. Jeff Cooper likes to term this type of action “if they are not going
down, they are going up.” The multiple signs playing out and the price
action make this one worthy to keep on the radar for the swing trader.
Until tomorrow,
Duke