As of 12/07/2023
  Indus: 36,117 +62.95 +0.2%  
  Trans: 15,299 +69.26 +0.5%  
  Utils: 878 -1.01 -0.1%  
  Nasdaq: 14,340 +193.28 +1.4%  
  S&P 500: 4,586 +36.25 +0.8%  
YTD
 +9.0%  
 +14.2%  
-9.2%  
 +37.0%  
 +19.4%  
  Targets    Overview: 11/29/2023  
  Down arrow34,500 or 36,400 by 12/15/2023
  Down arrow14,500 or 15,800 by 12/15/2023
  Up arrow900 or 825 by 12/15/2023
  Down arrow13,700 or 14,450 by 12/15/2023
  Down arrow4,450 or 4,650 by 12/15/2023
As of 12/07/2023
  Indus: 36,117 +62.95 +0.2%  
  Trans: 15,299 +69.26 +0.5%  
  Utils: 878 -1.01 -0.1%  
  Nasdaq: 14,340 +193.28 +1.4%  
  S&P 500: 4,586 +36.25 +0.8%  
YTD
 +9.0%  
 +14.2%  
-9.2%  
 +37.0%  
 +19.4%  
  Targets    Overview: 11/29/2023  
  Down arrow34,500 or 36,400 by 12/15/2023
  Down arrow14,500 or 15,800 by 12/15/2023
  Up arrow900 or 825 by 12/15/2023
  Down arrow13,700 or 14,450 by 12/15/2023
  Down arrow4,450 or 4,650 by 12/15/2023

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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