Bulkowski's NCR (NCR) Trading Quiz

What chart patterns can you find? Look for the following (if you find others, great!): broadening top, double top, double bottom, head-and-shoulders bottom, head-and-shoulders top, flag.

Price has broken out upward from the flag.

I bought the stock a day after the price bar pointed to on the chart.

From my notebook: "11/16/2020. Buy reason: I've a lot of cash so I'm looking to deploy some of it. Maybe swing trade it to 30-33 (where it should reach resistance). It's breaking out of congestion (making a new high since the stock went sideways to slightly up from the March low. It's not an impressive performer, so that's why I don't really trust the stock. I'll cut the position down to compensate, but I can see a recovery to the low to mid 30s easily enough. S&P says hold as of 11/2/20, so report is recent. Says risk assessment is high, which is something I've not seen before. Ford ranks it 2. I see this recovering as economy recovers from covid-19. The stock is part of IT services, which is hot and I expect will continue to be hot. That's why I chose this stock, too. Industry and stock trend are very good. A rising market will help, too, of course."

The stock made a nice move higher after I bought. Do you continue to hold, sell, or sell short?

Answer: I held on. From my notebook: "12/7/20. I considered selling this today. Stock reached a high last price bar, meeting resistance from Jan 2020 peak [not shown]. Most likely it'll move sideways to down, consolidating for a month or two before a continued move higher. Highly rated, still. Anals [analysts] are tripping over themselves to raise their price targets. Why they did it on the same day is a mystery I haven't explored."

Here's another potential sell point (different from prior chart).

Do you continue to hold, sell, or sell short?

I sold the stock. Notebook: "Date sold: 01/08/2021. Order details: Sold shares at 12:20. Sell reason: I think this has peaked so it's time to get out at the top. The Dow was up 212 points (0.7%) yesterday and the Nasdaq up 327 (2.6%). This is a high-tech stock that went down. It's down 40 cents when I sold it. Reason for sale: weakness. Overvalued? It shows a high-and-tight flag, suggesting the flag will build here and then price will rise 10% to 15%. However, many HTFs fail to confirm...

After I sold, the stock dropped to A before recovering. I made 53% on the trade.