As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20
As of 10/23/2020
  Indus: 28,336 -28.09 -0.1%  
  Trans: 11,880 +131.58 +1.1%  
  Utils: 894 +2.40 +0.3%  
  Nasdaq: 11,548 +42.27 +0.4%  
  S&P 500: 3,465 +11.90 +0.3%  
YTD
-0.7%  
 +9.0%  
 +1.7%  
 +28.7%  
 +7.3%  
  Targets    Overview: 09/29/2020  
  Up arrow29,300 or 27,400 by 11/01/2020
  Up arrow12,000 or 11,000 by 11/01/2020
  Up arrow915 or 840 by 11/01/2020
  Up arrow12,800 or 11,300 by 11/01/2020
  Up arrow3,700 or 3,400 by 11/01/2020
CPI (updated daily): Arrows on 9/25/20

Bulkowski's Abgenix Trading Quiz

 

Released 4/24/2020.

ABGX: Quiz

Below is a slider quiz to test your trading ability. Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.

 

1 / 7
chart pattern
What chart patterns can you find? Hint: Look for the following chart patterns (If you find others, great!): rounding bottom, diamond top, three rising valleys (which is one pattern), 2 pennants, and an ascending broadening wedge.
Answers are on the next slide.
2 / 7
chart pattern
The pennant hasn't shown any signs of a breakout and the flagpole isn't with what I look for currently (this quiz is from 2005). Price is near the top of the rounding bottom.
Question 1: Do you buy, short, or avoid trading this stock?
Question 2: If trading this one, what is the target price?
Question 3: If trading this one, what is the stop price?
My answers appear on the next slide.
3 / 7
chart pattern

Here's my notebook entry for the trade. It provides the answers.

"Date: 7/27/05. Filled at: 10.31. Stop: 9.27 or 10%. Upside target for the rounding bottom: 11.24 (7/21) - 6.45 (4/27) for a height of 4.79 * 57% (percentage meeting price target, pattern height added to pattern top) = 13.97.

Future S&P direction (guess): Downward because of overhead resistance. [Not shown]

Buy reason: Rounding turn. There is much support at 10.50 which the stock is struggling to breach. I think the stock will tumble back to support at 10.30, so I placed an order to buy at 10.31. Right now, the stock is rounding over, heading back down. It's at 10.43. News is that earnings were in-line, but the market didn't like it. The stock gapped open and I saw a small ascending triangle form but didn't act on it at 10.20 to 10.30. I missed my chance. I still believe in the stock. Once it pushes through this knot of resistance at 10-11, it could pop."

More on the next slide.
4 / 7
chart pattern

This is the chart on 8/1/2005. The stock has closed above the pennant's trendline boundary. The three Vs are the 3 rising valleys chart pattern. E and E is an unconfirmed Eve & Eve double bottom. TT is a triple top or maybe a head-and-shoulders. The E in April 2005 is part of an Eve & Adam double bottom, but the price difference between the two bottoms seems large.

Question: If you didn't buy before, do you now?

My answer is on the next page.

5 / 7
chart pattern

Here's my notebook entry.

"Date: 8/1/05. Filled at: Canceled before execution. Stop: 9.91. Upside target: 15.

Future S&P direction (guess): Down

Buy reason: Rounding bottom. I like the way this stock is behaving. It shows a small knot of congestion (pennant) just after the breakout from a rounding bottom. I want to buy more if it continues to rise."

I don't remember why I canceled the trade... Here's additional notebook entries.

"8/31/05 Stop raised to 9.91, below the 10 round number and below resistance setup by overhead prices.
9/6/05 Stop raised to 10.61, below 62% Fib retrace and just below the low of 10.65 on 8/31. I don't trust to put it closer.
9/7/05 Stop raised to 11.03, just below the 62% Fib retrace value and closer to today's close."
The black dots show the date and price in which the stops were placed. Question: Do you sell the stock after the sharp vertical move?
The next page shows what happened next.
6 / 7
chart pattern
Here's my notebook entry. "9/21/05 I believe the stock is heading down so it's time to sell." Question: Do you agree?
The answer appears on the next page.
7 / 7
chart pattern
More notebook stuff:

"9/22/05 I watched the stock throughout the day. It was up in the morning so I thought it would hang in there, but no! Tomorrow, I'll try to time it on the up swing.

"Date: 9/23/05. Filled at: 11.41.

Sell reason: The stock has started moving down and I waited too long to sell. Getting out was full of problems as I forgot to cancel my stop order before trying to sell. I didn't know that the order wouldn't go through. When the stock rebounded to a higher price, I put in a limit order to sell but it took too long and didn't take. Price tumbled before I changed it to a market order and dumped it. Next time, just dump the thing. Selling now allows me to exit with a tidy profit and buy back in if I see the stock rebounding."

The stock never climbed to the 13.97 target. The stock did rebound but made a lower high, a sign of trouble. When the general market tumbled in the last few days, the stock followed. I made 10.5% in 58 days, or 66% annualized. Now, wouldn't that be nice?

The end.

See Also

 
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My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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