NASDAQ:QRVO   Qorvo, Inc
QRVO was burning down the house today! Something got in it's way. Appears to be trading in a rectangle top, or a horizontal trading channel. This pattern is neutral until the upper or lower trendline is broken with a trend in that direction. Like a symmetrical triangle, it is a consolidation pattern. Often it is also a continuation pattern, but not always.

Some folks swing trade from the top to the bottom, or from the bottom to the top. Can be a dangerous bet though but I guess most trades can be dangerous. You could place your stop right under the trendline or over the trendline depending on which way. Not a suggestion (o: Getting in to a trade close to strong support is usually the safest bet but even that can fail. Support and resistance levels were made to be broken or price would range all of the time.

You can get a ball park estimate on where price may end up by taking the width of the structure and extending it upward and downward from the trendlines . You can find mid rectangle by finding what you feel to be the top and bottom trendlines . subtract the bottom from the top, and divide it by two. This makes a good stop whatever direction price may go.

At least 5 touches are needed, 3 to one trendline and 2 to the other, to have a true rectangle . Often you can see one forming after 4 touches. Sometimes the 5th touch is the charm for both symmetrical triangles and rectangles, but by no means always. This one has already had 6 touches and there has been no breakout as of yet.

There is a gap below price.

Theremay be another pattern forming as well. I am not going there at this point. Sometimes a harmonic pattern can appear to be a double top , and they are often a double top , but there is also a pattern in formation. What you get is a crooked M looking structure with a bullish harmonic pattern . I am not saying this will break to the downside. This pattern is neutral until a trendline is broken.

A well loved stock and I feel it is a strong stock. I will watch it for now.
No recommendation.

Winning a bad bet can be dangerous (o:
Comment: Boom. Up she went!