Earnings 4-20 BMO.
LMT has broken neckline of an inverse head and shoulders pattern as well as broken up from a bullish falling wedge. Long term high is 442.53. Yearly high is 417.62. There will obviously be resistance overhead. This is not a yearly cup and handle pattern. To break from a yearly cup, LMT would need to reach a bit over 417.62.
Negative volume is high. Positive volume (volume on up days) is waning. As a rule smart money buys on down days and can be represented by negative volume.
A cup should look like a rounded bottom. The handle is formed after price either stalls and creates a horizontal consolidation zone, or comes down to create the area of consolidation. The handle is like price taking a "breather" This handle is not super long yet. Handle lows are not written in stone but in a best case scenario, provides support. Consolidation zones provide support as a rule, and the handle is not an exception to this rule. Levels of support and resistance were made to be broken though. AMT is coming back to form the handle now.
A Scallop pattern looks like a cup but has no handle. Break out level is at the left cup high. I have noted this pattern often comes back down though to form a handle. It can be a while though before price comes back down to form a handle and then it is no longer a scallop pattern and may morph in to a cup and handle pattern (o:
The left side of a cup is the sell side and often you will see increased volume due to selling. The right side is the buy side and you want to see increased volume due to buying on the right side. You also want to see increased volume when price breaks out as well. Volume often chills out during consolidation.
There are different ways to calculate cup and handle targets but I use the high of the left side of the cup and add a bit to that to clear the resistance that resides there as long entry level. I take the left cup high and subtract the cup low to get cup depth. Then add this to what I have deemed to be break out level using fib levels. Sometimes I just multiply the depth by .38, .62, and .79 to get targets 1. Targets 2 which are long term, I play by ear but I use the 1, 1.27 and 1.61 if it seems the security could possibly make it to those levels.
Not a recommendation
LMT has broken neckline of an inverse head and shoulders pattern as well as broken up from a bullish falling wedge. Long term high is 442.53. Yearly high is 417.62. There will obviously be resistance overhead. This is not a yearly cup and handle pattern. To break from a yearly cup, LMT would need to reach a bit over 417.62.
Negative volume is high. Positive volume (volume on up days) is waning. As a rule smart money buys on down days and can be represented by negative volume.
A cup should look like a rounded bottom. The handle is formed after price either stalls and creates a horizontal consolidation zone, or comes down to create the area of consolidation. The handle is like price taking a "breather" This handle is not super long yet. Handle lows are not written in stone but in a best case scenario, provides support. Consolidation zones provide support as a rule, and the handle is not an exception to this rule. Levels of support and resistance were made to be broken though. AMT is coming back to form the handle now.
A Scallop pattern looks like a cup but has no handle. Break out level is at the left cup high. I have noted this pattern often comes back down though to form a handle. It can be a while though before price comes back down to form a handle and then it is no longer a scallop pattern and may morph in to a cup and handle pattern (o:
The left side of a cup is the sell side and often you will see increased volume due to selling. The right side is the buy side and you want to see increased volume due to buying on the right side. You also want to see increased volume when price breaks out as well. Volume often chills out during consolidation.
There are different ways to calculate cup and handle targets but I use the high of the left side of the cup and add a bit to that to clear the resistance that resides there as long entry level. I take the left cup high and subtract the cup low to get cup depth. Then add this to what I have deemed to be break out level using fib levels. Sometimes I just multiply the depth by .38, .62, and .79 to get targets 1. Targets 2 which are long term, I play by ear but I use the 1, 1.27 and 1.61 if it seems the security could possibly make it to those levels.
Not a recommendation
Comment:
Large effective volume and a pocket pivot on 4-8-2021