* Good earnings * Very strong uptrend since the 2020 crash * High 3-month relative strength in the Basic Materials sector * Breaking out of a ~9 month base with higher than average volume * Created a double bottom during the ~9 month consolidation * Second half of the double bottom can be considered a cup and handle pattern as well * Currently consolidating right above the broken resistance; creating a new support * Maximum probable ROI is ~21.97% if the trade goes in our favor
Trade Idea: * If you're looking for a trade during these market conditions you should be ready to face volatility and trades going against you. * That being said, if you are looking to enter, now's a great time to enter this stock as it's consolidating just above the broken resistance and is offering a great risk/return ratio
* If you're looking for a discount you have a few options 1) You can look for an entry at the resistance turned support level of $159.90 2) If it breaks and closes below that, you can look for an entry around the $158 area as that should serve as short term support 3) If it breaks and closes below $158, you can look for an entry near the $155.50 area as that should serve as a stronger support level.
Caution: * Again, the current market conditions are uncertain and if you are going in, trade with caution. * A daily close below $155.50 would negate the idea.