This is the sort of long term consolidation pattern that eventually leads to significant gains. Observe the resistance at the $52.50-55 level and how long it has taken to surmount that level (it sits close to $55 right now).This particular pattern, in NFX, looks to be very close to resolving itself to the upside. I doubled my long position this morning. The only problem for me with a pattern like this is the length of time it takes to resolve. I want to trade patterns that work now, not eventually. In this case there will be some waiting involved which is the only factor keeping me from buying hand over fist.
Expect that once resistance is cleared this stock will rocket higher save for a potential retest of that key level from above which will, if it happens, create an even better buying opportunity.
No comments:
Post a Comment