In this stock chart lesson, we will learn how LAC rose from $13 to $40. We will study the chart pattern and the technicals.
Here are the things you will learn on this page:
LAC is a stock that bottoms by setting up a saucer pattern. As you can see, the stock fell from January to May 2021. In May, the stock found support at the rising 200 MA.
From there, the stock moves sideways trading up an down the 200 day moving average.
While the sideways trading may be boring, the stock was actually forming a nice saucer bottom. Then the stock formed a bullish cross where the 20 MA cross above the 50 MA.
From August onwards, we can see that the stock was above the rising 20 MA and 50 MA most of the time. This was a conducive environment for a stock to be bullish.
As the stock reach the previous high, it formed a handle and the stock broke out of the handle.
In combination with the saucer bottom, the stock formed a saucer with handle. This is somewhat like the cup with handle pattern that is famously used by many traders.
Let us now take a look at the weekly chart of the stock. You can see the saucer with pattern more clearly in the weekly chart.
Even when the stock was trying to bottom, the weekly stochastics were showing a bullish divergence. This bullish divergence was hinting of a bullish move in the stock.
The MACD lines were very good at signaling buy and sell moments. Back in March 2021it had a sell signal which warned of a prolonged downtrend and sideways move.
Then the MACD gave a buy signal and the stock moved higher from there. The MACD lines have been rising and is still hinting of more upside movement for the stock.
The weekly 50 MA was also rising and the stock stopped dropping near the 50 MA. The weekly 50 MA acted as a support to the stock and moved up.
There you have it. A great stock chart lesson and hopefully you will be able to spot the next stock like LAC!
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