As of 10/03/2022
  Indus: 29,491 +765.38 +2.7%  
  Trans: 12,465 +406.70 +3.4%  
  Utils: 915 +26.32 +3.0%  
  Nasdaq: 10,815 +239.81 +2.3%  
  S&P 500: 3,678 +92.81 +2.6%  
YTD
-18.8%  
-24.4%  
-6.7%  
-30.9%  
-22.8%  
  Targets    Overview: 09/15/2022  
  Up arrow30,800 or 27,500 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow950 or 850 by 10/15/2022
  Up arrow11,500 or 9,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 10/3/22
As of 10/03/2022
  Indus: 29,491 +765.38 +2.7%  
  Trans: 12,465 +406.70 +3.4%  
  Utils: 915 +26.32 +3.0%  
  Nasdaq: 10,815 +239.81 +2.3%  
  S&P 500: 3,678 +92.81 +2.6%  
YTD
-18.8%  
-24.4%  
-6.7%  
-30.9%  
-22.8%  
  Targets    Overview: 09/15/2022  
  Up arrow30,800 or 27,500 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow950 or 850 by 10/15/2022
  Up arrow11,500 or 9,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 10/3/22

Bulkowski's Xcel Energy (XEL) Quiz

Released 8/15/2022.

XEL: Quiz

Captions appear below the pictures for guidance, so be sure to scroll down far enough to read them.


1 / 4
chart pattern

Look for the following chart patterns (If you find others, great!): broadening top, head-and-shoulders bottom, triple bottom.

Answers are on the next slide.
2 / 4
chart pattern

The triple bottom isn’t easy to see in the chart because price doesn’t drop much moving into the chart pattern. Price has broken out upward from the triple bottom. The green line shows the confirmation price. A close above the line signals a breakout.

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?

See the next slide for answers.
3 / 4
chart pattern

Answer 1 (buy?): Buy because of the upward breakout.

Answer 2 (target?): Measure the height of the triple bottom and add it to the breakout price (the highest high in the pattern) to get a target price. The stock reaches the target 74% of the time. The low is at 16.96, high at 17.65 for a height of 0.69, making the target 18.34.

Answer 3 (stop?): Place a stop below point 3, because there seems to be support (price congestion) above that setup by the triple bottom.

Price topped out at 18.78, well above the 18.34 target, but is now moving down. Do you see any reason for selling? The answer and final chart appears on the next page.

See the next slide for an answer.
4 / 4
chart pattern

The stock has formed a complex head-and-shoulders top. If you extend the red neckline, price doesn’t close below it until March. A better sell signal is to use the right armpit low as the sell signal. Another head-and-shoulders top appears at peaks a, b, and c. A close below the blue neckline is the sell signal, which happens to occur on the same day as the green line.

You can use the measure rule for complex head-and-shoulders tops to determine how far price is likely to decline. If you bought the stock to collect dividends with potential capital gains, you may have wanted to hold onto the stock. Measure the downside and see if you could tolerate such a loss, at a minimum. If the fundamentals for the utility hadn’t changed, then it might be worth a hold, especially now that we can see price didn’t decline far.

The End.

See Also

Top of page

 

Support this site! Clicking any of the books (below) takes you to Amazon.com If you buy ANYTHING while there, they pay for the referral.
Legal notices: "As an Amazon Associate I earn from qualifying purchases." Paid links).

My novels:  Bedroom to Boardroom book Remember Me book Bumper's Story book Head's Law book
My stock market books:  Chart Patterns: After the Buy Getting Started in Chart Patterns 2nd edition book Trading Basics book Fundamental Analysis and Position Trading book Swing and Day Trading book Encyclopedia of chart patterns book Encyclopedia of Chart Patterns 3rd Edition book Trading classic chart patterns book

Copyright © 2005-2022 by Thomas N. Bulkowski. All rights reserved.
Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.
Some pattern names are registered trademarks of their respective owners.
Home Advertise Contact Donate Links Privacy/Disclaimer