Important Stocks To Watch - Breakout Stocks

Long Term Breakouts To Watch

Stocks At 50 MA & 200 MA

LAC Stock Chart Lesson - Stock Moves From $13 To $40

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:

  • Stock bases (saucer pattern)
  • Saucer with handle breakout
  • 200 day moving average support
  • Weekly 50 MA support
  • MACD Buy signal and sell signal lines

LAC finds support at 200 MA and forms saucer pattern

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!

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Stock Market Analysis January 2022 - Dstockmarket Stock Market Course

    Jan 12, 22 02:48 AM

    With a new year here, what do you think the stock market will do. Let us take a look at the S&P 500 and see where it is heading.

    Read More

  2. Stocks To Watch - Breakout Stocks

    Jan 03, 22 09:16 AM

    Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.

    Read More

  3. US Stock Market Analysis Dec 2021 | Dstockmarket

    Dec 31, 21 03:33 AM

    How will the US stock market work in December? Will there be a rebound? Will the stock market continue to go higher?

    Read More

  4. Stocks At Their 50 MA And 200 MA

    Dec 30, 21 01:36 AM

    Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off

    Read More

  5. Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price

    Dec 27, 21 08:33 AM

    Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.