Morning Star formationCandente Copper failed its lower trend channel line and failed a possible Bullish Pennant recently. So why is it interesting and why did I take position in it on Friday (another one mentioned in my Daily Comments)? Because of the 5 to 7 rule with a Doji candle at the end of the fall, this is also known as a Morning Star formation. Although StockCharts only shows it as a three candle formation, one could interpret this as two consecutive formations... A Three Black Crow formation followed by a Morning Star which would (in my mind) give the bearish reversal formation a better chance.
I took position at $1.55 on Friday with an initial target of $1.80 for gains of 16.1% in a few days. I have a tight stop on this set at $1.50. This should bring the price to the top down trend line where I will consider holding a little longer if volume keeps above the daily average. At this point Candente Copper is showing its indicators are oversold and about to turn upwards. The next resistance line is at $1.88 and if this goes, we could be seeing $2.40 again real soon for a potential high gain of 54.8% on this play.
See charts here https://us1.campaign-archive2.com/?u=4d6d491aea8e01d93d8a1f390&id=11b23f657d#DNT
For other weekly picks see https://us1.campaign-archive2.com/?u=4d6d491aea8e01d93d8a1f390&id=11b23f657d
Daily Comments at https://www.ta-picks.com/Daily.html
Learn to trade on a technical level https://www.ta-picks.com/Courses.html
Cheers!
See charts here For other weekly picks see Daily Comments at
https://www.ta-picks.com/Daily.htmlLearn to trade on a technical level
https://www.ta-picks.com/Courses.htmlCheers!