A classic textbook example of Abandoned Baby setup could be seen in PLTR.
Technical Analysis:
- Price is currently on a support area
- A candle has pierced through the lower bollinger band with a bullish confirmation candle on the following day
- Stochastic entered the oversold zone have started to reverse
- Strong sign of momentum via relative strength
Generally the Technology sector and Software industry are on a strong uptrend. I do believe the market psychology will bring a positive effect on this stock too.
I personally like this Abandoned Baby setup a lot due to the significant buying volume on both the "baby" candle and the confirmation candle.
However, do take note that the price action had failed to form a higher high & higher low.
Also the stock market is currently on a retracement, which might affect the setup.
Technical Analysis:
- Price is currently on a support area
- A candle has pierced through the lower bollinger band with a bullish confirmation candle on the following day
- Stochastic entered the oversold zone have started to reverse
- Strong sign of momentum via relative strength
Generally the Technology sector and Software industry are on a strong uptrend. I do believe the market psychology will bring a positive effect on this stock too.
I personally like this Abandoned Baby setup a lot due to the significant buying volume on both the "baby" candle and the confirmation candle.
However, do take note that the price action had failed to form a higher high & higher low.
Also the stock market is currently on a retracement, which might affect the setup.
Trade closed: stop reached:
Stop loss hit and structure broken. Will be looking for other setup