You are here: Home1 / Public Blog A Lesson On Long Strong Base:
I did a report in the past about how much I love being able to trade a well formed base. The report was highlighting LONG tight bases, they can be explosive. They stand out to me because in the past I have had such huge %-Gainers when stocks broke out of them. Do they always work? No. To be honest, I have entered some that also just bounced around and bored me to death, and some have even broken down due to bad earnings or an FDA rejection of their testing, etc . The Idea is that you buy near the supporting lows, so if it drops you get stopped out with small losses,. If it breaks out higher, the upside has huge potential.
Let me show you some examples of trades that I worked on this site before it became a premium site. With the Ebola scare, I noticed that many of the Ebola play stocks had formed good bases. APT, LAKE were 2 that I bought at support in the bases.
APT was stair-stepping higher and the pullbacks were being accumulated. Suddenly ...
Read MoreIf you've been reading my posts here for a while, then you know that we caught some large Moves in Miners Dec through Jan rising out of their bases. When that move topped out, we switched to Energy from the end of Jan through Feb. While OIL sold off relentlessly, many of the energy stocks were forming sweet looking bases ( please see prior reports if you are new here. ). With both of those sectors, I have also kept an eye on the SPX, NASDAQ, NATGAS, etc. So what has caught my attention lately?
On Feb 24 - I called a likely temporary bottom in Gold using the charts below.
GOLD is in a squeeze with spikes along the bottom. This is a bullish set up
This next chart showed that GOLD was on a supporting trend line...
Read MoreAfter any extreme sell off takes place and people finish discussing all the reasons why there can be no recovery, it's often a good time to go shopping. Why? When it gets overdone, the bargains can be great %-Wise. Recently while OIL & NATGAS sold off beyond expectations , I noticed that the equities stopped selling off and began building constructive bases. Temporary bottoms or permanent? Its too early to say for sure , but trade-able? Most certainly.
Here at Chartfreak, we have been buying & trading them for weeks now. I want to share some of the charts and ideas that we are again looking at , since I am expecting another leg higher.
OIL Feb 10- Some said "Bear flag" We had been trading energy stocks , and I saw signs that OIL wanted to go higher.
Feb 18 - consolidation/ base building. I posted this chart , I wanted a drop to $49 actually...
Read More
Scroll to top
