A Successful Bullish Trigger Gets a Pop; Walking Up Support; Walking Down Resistance
It’s time for more bullish and bearish charts, driven by Pattern Finder’s various algorithms for congestion, support, resistance, and breakouts.
Last post we noted the massive upgrades to Pattern Finder that were just released along with a special discount offered for new members that will end soon (link at the end of this post).
While there are many, the largest and likely most impactful upgrades surround ten new screens for bullish and bearish charts using either trending support and resistance, or intermediate congestion lines.
The screens should yield charts that are in a clear up trend (or down trend), with substantial relative strength (or weakness), substantial buying volume (or selling volume), and most importantly, charts that expose opportunistic setups in real time.
We’ve also added alerts which come straight to your phone (text message) or email for breakouts either in specific stocks you follow, or the entire market.
Now, onto charts.
We have been asked to review charts that signaled a breakout and to follow up with them, so we will do one of those, but then move to current chart set-ups.
On 2-27-2023, there was a breakout of three-year resistance by ticker HY. Here is how a Pattern Finder member found it:
Now we are several days after that event and we can turn to the 3-year chart.
We let Pattern Finder draw in the congestion lines (pink), trend support (red), our focus for this chart - trend resistance (green), and the CANSLIM patterns (like cups and handles).
We note the gap up recently.
But, when we zoom into the chart, we can see the trigger that fired on 2-27-2023 from the ‘Pattern Breakouts’ tab:
That first trigger came before the stock went through three congestion lines (pink lines) and for now, it’s off our radar.
Let’s look forward now and start with ticker MNSO and the three-year chart. We used this screen to find the chart:
And here is the 3-year chart, where we focus on this idea of ‘walking up rising support,’ which in English means the stock is rising with higher lows, so it looks like it’s following the trend support line that Pattern Finder identifies.
(We will do this for a bearish chart with a stock walking down trend resistance and lower highs as well in this post.)
If we zoom in and try to target some profit and loss zones, we use the nearest downside congestion as the loss zone at ~$17 and the nearest upside congestion for the profit zone at ~$24.
The chart works out with a larger profit zone than loss zone by the very construct of that screen. This should be automatic, and it was.
Since we looked at a rising with support chart with MNSO, let’s do one more with ticker STVN. We used this screen to find it:
Here is the 3-year chart and we see a pop off of that trend support line, this time due to earnings.
We don’t need to zoom in on this one — it’s a stock that rode the rising support and earnings has pushed it higher.
Let’s turn to some bearish charts.
Next we turned to the bearish corollary of the first bullish screen we used:
Here we pluck out ticker ULH, and look to the 3-year chart.
We note a large gap down, and that too was based on earnings, which is easy enough to see in Pattern Finder from the ticker news tab:
We remind readers that Pattern Finder is also one of the most powerful fundamental analytics tools in the world as well, and while we don’t cover fundamentals much in these posts, Pattern Finder has robust analytics capabilities in this realm.
Here is the 3-year chart:
The drop off of earnings took the stock right to the base of a prior cup, and now it may be breaking that base.
We zoom in and add some possible profit and loss zones using the nearest congestion lines (pink lines) as our guide:
Substack (this newsletter writer) limits how long emails can be, so we will stop here and offer readers to look at some other of the bearish opportunities in Pattern Finder from those screens but we sneak in ticker HRMY which is walking down trend support following lower highs.
Alright, the rest is for you to discover inside Pattern Finder.
If you’re not a member yet, you can watch a rather riveting seven minute minute video here and see special pricing (ending soon): Pattern Finder: The Next Era of Charting
The video above is worth your time…
Thanks or reading, friends.
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