i am taking this trade because AWR is a underrated stock
- breaking out of the zone and the 200
- perfect candle structure
from past performance the stock hates the 200 (should stop if so)
Tp- 92 (50sma)
Tp- 99-100
After NYSE:AWR made a good breakout with a break away gap from a Volatility Contraction Pattern, is making a good and strong follow through. Also, the MACD is positive and going up.
The quotient against the SP:SPX shows good realtive strength against the market; IBD Investors gives a 72 relative strength rating, and is #3 in its industry group. NYSE:AWK ...
Chart pattern: Bull Flag
Entry: 79.26$ (this would end the trend of the correction)
Stop: 76.15$
Target: 89$
Risk/Reward-Ratio: > 3:1
Stopmanagement: Parabolic SAR daily chart default settings
Could be a breakout on... Water lol. Waiting for confirmation, but if tomorrow stays green, we could see retest of top of channel. Otherwise we could see a move to the downside which is probably needed. Will insert weekly view that the lines have been drawn off of.
Cup is a 30-40% retracement of previous upswing. Handle 10-20% pullback of previous upswing, with very light volume at end of handle. Entry today at close above top of handle on strong volume.
Strengths:
- Fundamentals: AWR is outperforming its industry = leader, PE is 25 vs. 19 for industry; total debt/equity is 0.7 vs 1 for the industry; good 5 yr earnings growth, gross margins, and ROE, even though they are slightly less than industry avg, 14%, 45%, and 13% respectively; Institutional ownership is very strong at 66% vs an industry avg of 1%....
An UP circle has reached to a local high and I expect retarcement to previous highs around 57.30...doji candle after a strong move up...rsi -ve divergence....fibo ext. level has been reached...i will go for it
