Ascending channel : clear uptrend ignited by the double bottom
Breakaway gap + breakout : psychological shift causing the breakaway gap, buyers still strong
Halfway retracement : after a breakout stocks tend to pullback halfway
Previous resistance = support
The double bottom ignites a new trend and creates the ascending channel. The stocks makes higher highs, higher lows.
Everytime it pulled back from there on, it always retraced halfway (didn't draw it in because the chart would look messy).
It makes up for a decent swing up to the swing high where I'll start scaling out.
Make sure you keep an eye on the gap on the left side if the stock breaks the resistance.
Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***
@apsnt, Did you mean the gap down ? If yes, I agree. I've sold 3/4 of my position already, holding 1/4 to that gap and will probably sell then. If we break that, we will very probably see a correction, meaning another opportunity. Thanks for your comment !
Tigerflying
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Great analysis. Bought in at $3. Riding this stock for the next year. See no reason why this stock cannot achieve substantial gains above the current level.
UnknownUnicorn6734025
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@Tigerflying, Thank you ! I'm not a long-term investor so I do not have any idea how good the fundamentals are.