As of 07/01/2022
  Indus: 31,097 +321.83 +1.0%  
  Trans: 13,289 +132.53 +1.0%  
  Utils: 993 +23.33 +2.4%  
  Nasdaq: 11,128 +99.11 +0.9%  
  S&P 500: 3,825 +39.95 +1.1%  
YTD
-14.4%  
-19.4%  
 +1.2%  
-28.9%  
-19.7%  
  Targets    Overview: 06/29/2022  
  Up arrow32,300 or 29,900 by 07/15/2022
  Up arrow14,000 or 12,500 by 07/15/2022
  Up arrow1,000 or 925 by 07/15/2022
  Up arrow12,100 or 10,750 by 07/15/2022
  Up arrow4,000 or 3,700 by 07/15/2022
CPI (updated daily): Arrows on 6/23/22
As of 07/01/2022
  Indus: 31,097 +321.83 +1.0%  
  Trans: 13,289 +132.53 +1.0%  
  Utils: 993 +23.33 +2.4%  
  Nasdaq: 11,128 +99.11 +0.9%  
  S&P 500: 3,825 +39.95 +1.1%  
YTD
-14.4%  
-19.4%  
 +1.2%  
-28.9%  
-19.7%  
  Targets    Overview: 06/29/2022  
  Up arrow32,300 or 29,900 by 07/15/2022
  Up arrow14,000 or 12,500 by 07/15/2022
  Up arrow1,000 or 925 by 07/15/2022
  Up arrow12,100 or 10,750 by 07/15/2022
  Up arrow4,000 or 3,700 by 07/15/2022
CPI (updated daily): Arrows on 6/23/22

Bulkowski's Southern Peru Copper (PCU) Trading Quiz

 

Released 3/30/2022.

PCU: 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!): diamond top, high and tight flag, 2 rectangle tops, falling wedge.

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

The high and tight flag (HTF) measures from a low of 16.84 on 8/28/03 and rises to the top of the diamond at 38.25 on 11/14/03, a rise of 127% in about 2 months, qualifying the rise as a HTF. The breakout is upward from the pattern and upward from the diamond. (For a HTF, price must climb 90% in less than 2 months and that was fulfilled when price approached the bottom of the diamond).

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 (buy?): Buy

Answer 2 (target?): Since the rise leading to the pattern is 127%, take half of that 63%, and that's the measure (it works 82% of the time).

Answer 3: Twice volatility is 3.61, suggesting a stop no closer than 35.14 or 17.9% below the current low would work well. Of course, that's much too far away, I think. I was going to suggest placing it below the diamond bottom, but that's farther away. Thus, as bad as it is, I'd use the volatility stop or maybe place it a bit closer.

Price at point A is 51.65 and that's a rise of 35% above the diamond top, well below the projected target rise of 63% (and a corresponding price target of 48.96).

Question: is it time to sell or hold on for additional gains?

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

The correct answer is to sell. When price pierced the lower ascending broadening wedge trendline that was the sell signal. Selling then or near the pullback at B would have saved you a bunch of money.

The End.

See Also

 
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