Felt this pattern for Checkpoint warranted publishing, as rarely do you see a stock repeat such a symmetrical pattern. All trend lines are the same and the bars between highs and lows are nearly identical. If the pattern continues, CHPT will move lower to around the $6.50-$7.00 range before turning up. I would guess there is a good chance the move up could break the red trendline and continue up, given the macroeconomic climate and expected increase in electric car purchases in the future.
Also included a Scenario 2 (doubtful), which is purely based on the stock breaking the current trend line, but I expect to see a regression back to the trend line as we have seen in the past.
Weellp that doubtful scenario should have been labeled most probably. I'll be taking 50% out at this point
Gmvancity
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It looks like the stock closed at $13.45 last May 27, Friday. Does your thesis still hold?
myfye13
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@Gmvancity, Looks like a break in the pattern, albeit a trend line break occurred in Sept 21 and Feb 22, yet the stock continued lower. However, Friday (May 27th) seemed like a signification breakout on increasing volume. Considering the industry this company is in and the demand for electric vehicles, surface level I think the stock was and still is undervalued. Maybe we are seeing a significant trend change? Or 6 weeks of selling pressure finally let off? I'll be interested to see what the stock does this week - regress to the prior trend line or continue upward? But to your question, I think the "doubtful" scenario is much more likely now.