NYSE:DUK   Duke Energy Corporation (Holding Company)
Since 2014, my markets approach is to spot trading
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Looking at the monthly chart (left side) we can see that, if we ignore the march 2020 covid drop (which I think we easily can), prices are moving within a well-defined Channel.
This is something important to spot when we are analyzing a chart from a Classical Charting perspective, because it gives us much more information about the quality of the scenario and the pitfalls we could encounter.
In this case, for example, the Rectangle in itself is a good one. It has taken place testing the 200 days EMA and it is at the all-time high, which means no previous levels to deal with. Nonetheless we are also at the upper boundary of the huge Channel we mentioned and this is a big deal. Prices could sure breach that boundary and even use it as a new support which would be great for our trade but, at the same time, that boundary could also be hard to beat and bounce prices immediately back towards the opposite side of the Channel.
This is one good example to show what I call "discovering chart character" when I teach Classical Technical Analysis . By this I mean that, whenever you open a chart for the first time, you should start from monthly timeframe to see and draw what the stock (or whatever it is) is telling you about its story: is it usually reliable in terms of patterns? Is it a stock which tend to "trend" or a just a "choppy/mess" one? Are there strong levels or big pattern which involve the one I am looking at now? and so on. Then try to be more specific with weekly timeframe and, lastly, focus mostly on the daily chart for the pattern you are considering to trade.

  • Pattern Class: 🌕🌕🌕🌕🌑
  • Target area: 120.00
  • Breakout area above: 111.00
Entry Point and Initial Stop Loss depends on your Trading Plan Tactics and Money Management rules.

"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.