Three Bullish and Three Bearish Charts - Mega Cap Strength Persists

Lede

Today we turn to three bullish and three bearish charts various screens in Pattern Finder.

Bullish Charts

We start with this screen: “Bullish Charts; Multi-timeframe; Nearest Congestion or Trend.”

While the news headlines bring it up on the periphery, when we look for bullish charts it does become more transparent that some mega caps are showing significant strength.

We will start with GOOGL, which shows up on this screen. Specifically the screen looks for the following:

• Up trend

• More room to next upside target than downside target

The charts we will share all have Pattern Finder identify the following for us:

• Trend support (red line)

• Trend resistance (green line)

• Points of congestion (pink lines)

• Distance to next upside and downside

• Patterns

Here is GOOGL. See how the end of an ascending base (three rising bases in a row) coincides with the bottom of a cup. We have highlighted that line in yellow.

We see the uptrend and we see the automatically computed distance to upside and downside targets. Let’s zoom in.

We see 12.8% room to that coinciding ascending base end and bottom of a cup, to about $122 on the chart and a stretch target of $135. We see the downside at about $105, the nearest congestion, and below that room to $85.

This yields a 12.8:3.1 upside to downside ratio.

It turns out that META also appears on this screen. We have been highlighting this stock for some time and we can now see the strong up trend that materialized:

On the 3-year chart a trader could argue that the run may be coming to its natural conclusion in the short-term, but, for the more optimistic trader, a shorter term chart shows upside to capture that prior gap:

The META chart still has that ‘walking up support’ characteristic, and with a tight stop, a trader could swing on that gap fill, or even just to the end of the prior gap (~$245).

Our last bullish chart is for ticker RELX. This is a $60B commercial services company. It’s fascinating to note that the recent strong up trend and walking up support started at a base that was set back in early 2021 with a prior ascending base. Check it out in the chart below:

This would be another optimistic trade that looks for a continuation of the current price channel - higher highs and higher lows.

Now, on to bearish charts.

Bearish Charts

We start with ticker HRMY, which we highlighted for Pattern Finder members as a bearish charts in our weekly email several days ago.

Here is the 3-year chart:

We see a downward channel with lower highs and lower lows. We can zoom in to the target zones and distance to them (this is automatically zone by Pattern Finder).

A downside target to ~$27 appears with a stop at $32 upside target.

Next we turn to ‘Pattern Breakouts’ and in specific, breakdown below 18-month and 3-year support:

We pluck out ticker RBB.

The trade here would be a simple one: a speculation on further deterioration below support.

Finally we look to ticker ASAI. This is an ADR in the retail trade sector which we found using the ‘Heavy Selling Volume’ screen in Pattern Finder.

We can see the stock has fallen below trend support (red line), and could set to test those 2022 lows. An alternative view — a contrarian view — is that the stock could bounce off the congestion line about 5% lower and recapture that lost support.

We zoom for our final chart and a closer look:

Conclusion

You can do this yourself inside Pattern Finder; it takes about 3 seconds per chart, if that. Screens find the charts to look at if you don’t have your own watchlist.

We are offering a huge discount on this page and some demo videos to explain the technology. Pattern Finder: The Next Era of Charting.

Thanks for reading, friends.