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 Duke Energy Trading Quiz

Released 8/9/2021.

DUK: 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 (if you find others, great!): rising wedge, symmetrical triangle, ascending scallop, Eve & Adam double bottom, Big W

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

The rising wedge has broken out downward on exceptionally high volume after a quarterly earnings release.

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 / 3
chart pattern

Answer 1 (buy?): Since the breakout is downward, consider shorting the stock, but recognize that in 5 to 10 days, the stock may resume climbing (with a big earnings miss, the stock just drops and drops. With small misses, it'll plummet and recover, and that's what we see here).

Answer 2 (target?): The rising wedge target is usually the start of the wedge (the bottom). In this case, the top of the symmetrical would be a good target (because it has two tops near the same price), I think. Call it 26.07, which is above the round number support of 26.

Answer 3 (stop?): If price rises above the recent congestion, then close out the short position. I show the congestion area circled in green, say 29.54.

Price formed a three rising valleys chart pattern in the process of curling around the end of the wedge (see the three Vs). Price closed above the top of the pattern meaning that if you shorted the stock you probably lost money.

Is the behavior of the wedge surprising? Not really. In a bull market, 19% of the rising wedges saw price drop less than 5%. Almost a third (32%) saw price drop less than 10%)

The End.

See Also

 
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My novels:  Remember Me book Bumper's Story book Head's Law book
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