As of 02/21/2024
  Indus: 38,612 +48.44 +0.1%  
  Trans: 15,582 +118.68 +0.8%  
  Utils: 854 +11.76 +1.4%  
  Nasdaq: 15,581 -49.91 -0.3%  
  S&P 500: 4,982 +6.29 +0.1%  
YTD
 +2.4%  
-2.0%  
-3.1%  
 +3.8%  
 +4.4%  
  Targets    Overview: 02/13/2024  
  Down arrow37,700 or 39,000 by 03/15/2024
  Up arrow16,400 or 15,400 by 03/01/2024
  Up arrow870 or 800 by 03/01/2024
  Down arrow15,000 or 16,400 by 03/15/2024
  Down arrow4,850 or 5,100 by 03/15/2024
As of 02/21/2024
  Indus: 38,612 +48.44 +0.1%  
  Trans: 15,582 +118.68 +0.8%  
  Utils: 854 +11.76 +1.4%  
  Nasdaq: 15,581 -49.91 -0.3%  
  S&P 500: 4,982 +6.29 +0.1%  
YTD
 +2.4%  
-2.0%  
-3.1%  
 +3.8%  
 +4.4%  
  Targets    Overview: 02/13/2024  
  Down arrow37,700 or 39,000 by 03/15/2024
  Up arrow16,400 or 15,400 by 03/01/2024
  Up arrow870 or 800 by 03/01/2024
  Down arrow15,000 or 16,400 by 03/15/2024
  Down arrow4,850 or 5,100 by 03/15/2024

Bulkowski's Alaska Air (3) Trading Quiz

Released 5/10/2021.

ALK: 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 / 3
chart pattern

What chart patterns can you find? Look for the following: Big W, double top, double bottom, head-and-shoulders top, symmetrical triangle, descending scallop, plus one ascending and inverted scallop.

Answers are on the next slide.
2 / 3
chart pattern

AADT is an Adam & Adam double top. The big W spans the Eve & Eve double bottom and ends at the head of the Head-and-shoulders top. The symmetrical triangle shows an upward 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?
My answers appear on the next slide.
3 / 3
chart pattern

Answer 1: Buy because of the upward breakout.

Answer 2: Measure the height of the triangle and add it to the breakout price. The result is the target and price reaches or exceeds the target 66% of the time, so consider multiplying the height by 66% and then adding it to the breakout price. The breakout price is the price at which the stock pierces one of the triangle trendlines.

Answer 3: The bottom of the triangle is usually a good stop location and that also agrees with a volatility stop location. Here's the details as of the day before the breakout: Volatility stop: $27.20 -8.4%. 2x volatility: $1.71 Minor low stop: 28.22 -5.0% on 03/21/2005.

If you bought the stock, you'd have taken a loss. If you still held on as it declined, that would be a mistake. The day after the prior chart, price peaked at 31.40 and dropped to a low of 25.55, for a potential loss of 19%. Price did recover, but you should not have ridden out the decline. Overhead resistance at line A formed a solid wall accompanied by high volume, a potent resistance level.

The End.

See Also

 
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