As of 05/24/2024
  Indus: 39,070 +4.33 +0.0%  
  Trans: 15,083 +74.08 +0.5%  
  Utils: 926 +1.92 +0.2%  
  Nasdaq: 16,921 +184.76 +1.1%  
  S&P 500: 5,305 +36.88 +0.7%  
YTD
 +3.7%  
-5.1%  
 +5.0%  
 +12.7%  
 +11.2%  
  Targets    Overview: 05/13/2024  
  Up arrow41,000 or 38,500 by 06/01/2024
  Up arrow16,050 or 15,300 by 06/01/2024
  Up arrow960 or 900 by 06/01/2024
  Up arrow17,250 or 15,850 by 06/01/2024
  Up arrow5,500 or 5,100 by 06/01/2024
As of 05/24/2024
  Indus: 39,070 +4.33 +0.0%  
  Trans: 15,083 +74.08 +0.5%  
  Utils: 926 +1.92 +0.2%  
  Nasdaq: 16,921 +184.76 +1.1%  
  S&P 500: 5,305 +36.88 +0.7%  
YTD
 +3.7%  
-5.1%  
 +5.0%  
 +12.7%  
 +11.2%  
  Targets    Overview: 05/13/2024  
  Up arrow41,000 or 38,500 by 06/01/2024
  Up arrow16,050 or 15,300 by 06/01/2024
  Up arrow960 or 900 by 06/01/2024
  Up arrow17,250 or 15,850 by 06/01/2024
  Up arrow5,500 or 5,100 by 06/01/2024

Bulkowski's Oxford Industries (OXM) Trading Quiz

Released 3/29/2022.

OXM: 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 / 4
chart pattern

What chart patterns can you find? Look for the following (if you find others, great!): inverted and descending scallop, inverted and ascending scallop, 2 rising wedges, ascending triangle, broadening top, head-and-shoulders top, head-and-shoulders bottom.

The answers are on the next slide.
2 / 4
chart pattern

Price has broken out downward when it closed below the rising wedge, just as the chart pattern predicts.

Question 1: Do you buy, short, or avoid trading this stock?
Question 2: What is your price target?
Question 3: What is your stop loss price?
See the next slide for answers.
3 / 4
chart pattern

Answer 1 (trade?): Since the breakout is downward, you can sell an existing holding or go short.

Answer 2 (target): If shorting, price tumbles to the start of the wedge just 32% of the time, which is the price target for rising wedges. A 32% success rate doesn't inspire much confidence. Price might bottom at 11.50, near the site of the flat price movement (red line) just before the wedge starts in late February 2003, but there are other support zones on the way to that price.

Answer 3 (stop): Place a stop just above the wedge high and above the large rounding turn from Nov 2002 to January 2003, say 13.30, which is 3 cents above the 12/12/2002 high. That would put the potential loss at 4%. Volatility is 22 cents, so a stop no closer than 13.16 (the intraday high at 12.94 + 22 cents) would work well.

As the above chart shows, price took off so a short position would have ended in a loss.

The ascending triangle shows a downward breakout.

Question: Do you short the stock again? If you decide to short, pick a price target and stop loss level.

The next slide shows the answer.
4 / 4
chart pattern

As you can see, the stock made a premature downward breakout from the ascending triangle. Price shot out the top of the chart pattern and made a new high more than double the top of the triangle. If you didn't place a stop, you'd be holding a massive loss.

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 notice for paid links: "As an Amazon Associate I earn from qualifying purchases."

My Stock Market Books
My Novels

Copyright © 2005-2024 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 Privacy/Disclaimer