The "neckline" of the bottom after the market collapse of 2020 is very strong support as the selling at this juncture was a panic mode due to the pandemic economic lockdown. Stocks collapsed beyond fundamental levels at that time.
This support level is going to thwart downside action for many stocks near this area. This kind of pattern warns of the impending end to heavy selling down. So, many stocks should develop a bottom around this level.
Example: The neckline of the 2020 bottom formation for CMCSA is at 39.49. But this is NOT confirmation of an entry point yet. Best to wait for a breakout of the current basing action. Bottom formations can take a while to build sufficient buying energy to move up sustainably.
This support level is going to thwart downside action for many stocks near this area. This kind of pattern warns of the impending end to heavy selling down. So, many stocks should develop a bottom around this level.
Example: The neckline of the 2020 bottom formation for CMCSA is at 39.49. But this is NOT confirmation of an entry point yet. Best to wait for a breakout of the current basing action. Bottom formations can take a while to build sufficient buying energy to move up sustainably.
Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
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Martha Stokes, CMT
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Chartered Market Technician
Co-founder, CEO & Head Instructor at TechniTrader
Learn more at the TechniTrader Learning Center: ttrader.im/learning-center
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.