Before a major cup and handle forms, it often forms a half cup or rounded bottom that signals a more back toward former highs. It can be an early entry into a really large move if the stock breaks above former highs, or it can simply provide a swing trade which rides the momentum up into the prior high region.
The target for the trade provides for an exit just...
NASDAQ:NBIX broke out through acending triangle, and may now rally up to 120-130 level (Sep18 top), where both ascending triangle target would be reached and C wave would equal to 1.61 of A. There it should find strong resistance and potential double top.
Stop loss: 79.0
Here I shown some nearest NBIX levels.
Yellow notes linking levels and bars which I chose to define lines.
After double bottom it has broken resistance level and went upward. But next level had been reached very quickly as for me. Two false breaks says about this too. Next bar close above this level but I guess that there is not enough power to go further.
Please, check the stock's recent news, earning calender as well as other factors that may influence the price movement. This is just educational purpose. This pattern is identified when the price action of a security meets the following characteristics: First the price falls to a trough and then rises once you identify this section, check if price falls below the...