Important Stocks To Watch - Breakout Stocks

Long Term Breakouts To Watch

Stocks At 50 MA & 200 MA

PAG Stock From $79 To $109 In 2.5 Months, Cup With Handle & Ascending Triangle

This is how PAG stock went from $79 to $109 in 2.5 months. It made a cup with handle pattern and also an ascending triangle pattern. We will also learn about the Japanese Candlestick pattern of the bottoming tail. You will also learn about the break of downtrend line.

Let us begin with the weekly chart. Sometimes it is a good idea to start with the weekly chart as it can allow you to spot some things that other people do not see.

First of all the weekly chart of Penske Automotive told us that the stock was quite oversold in the weekly chart. The stochastics became oversold and gave us a buy signal. As the stock became oversold, a weekly Bottoming Tail also appeared.

The weekly bottoming tail is a bullish reversal pattern and when you see the bottoming tail being present in an oversold situation, it can be a very powerful signal that the stock is about to go back up.

As you can see, the stock broke above the highs of the bottoming tail and from there it shot up. However, it will take an investor some patience. The stock traded sideways for many many weeks.

But the sideways trading eventually set up a chart pattern called the cup with handle pattern. The correction and also the sideways trading made a cup like pattern in the chart of PAG. The stock broke out of a handle and then it shot up.

Let us now zoom into the daily chart of PAG. Let us examine the technicals. First of all the stock was above the rising 200 MA. The 200 MA is the yellow line on the chart.

When a stock is above its rising 200 MA it means it is in a long term uptrend. Therefore any correction could be an opportunity to buy the stock. The first sign of a change in trend is when the stock broke above a downtrend line.

That happened in early July 2021. The second sign of a trend change is when the stock went above the 20 MA. The red line is the 20 MA. PAG then made higher lows (HL) and it had a bullish cross. A bullish cross is where the 20 MA crosses back above the 50 MA.

As the stock nears the previous top in May, the stock stalled and traded sideways. But this sideways trading resulted in the formation of an ascending triangle.

An ascending triangle is a continuation pattern and when the stock broke out above the ascending triangle, the stock shot up higher quite rapidly. Trends are very important and this stock is in a very strong bullish uptrend.

You know that a stock is in a nice uptrend when it is above its rising 20 MA, 50 MA and 200 MA. The stock is still trading above all 3 moving averages right now. Therefore there is a high probability that this stock will continue to rise.

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

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Stocks To Watch - Breakout Stocks

    Dec 03, 21 09:52 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

  2. Stocks At Their 50 MA And 200 MA

    Dec 03, 21 07:22 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

  3. US Stock Market Analysis Dec 2021 | Dstockmarket

    Dec 03, 21 05:59 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. Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price

    Dec 01, 21 09:24 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

  5. US Stock Market Analysis November 2021

    Nov 30, 21 09:11 AM

    Are the markets going to continue to move higher? Is it in an uptrend or downtrend and where are the support and resistance?

    Read More

New! Comments

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