Pattern Recognition on Stocks like $BE

Hey there! I hope you are having a fantastic week! The weekend is around the corner! This week has been a gem. The Markets are hitting all-time highs, again 3 out of 4 stocks follow the overall market. Again I am not trading right now, I am just obsessed with Stocks. I am not a Guru, I am not a Master of the Markets, nor am I your Teacher. I am a Student of the Markets. So today I am going to talk about mainly $BE, which is an absolute gift from the Market. It's the Same Fucking Pattern, human nature never changes! It's all Pattern Recognition, like Tetras As well I will be going over $FCEL and $ ASCT. Like always the video lesson will be below! I will see you soon!








 First I will start with $BE, this is an absolute gift from the Market. This is a classic over-extension chart pattern! It's the same fucking pattern, Just like $REKR, $ACST, and $WHKS and many more. This may seem like just an ordinary move, but it's not. Human nature never changes. In my books, an over-extension classifies as a stock that "extends" towards the upside without any significant pullback. I don't care how well the Company is when I see a stock that is over-extended I do expect a pullback. Typically when a stock goes beyond 3 green days in a row, I look for the Momentum shift. As in the First Red Day Pattern is a fucking GIMME set-up. Again as a Trader, you have to find a Pattern that works for YOU! What works for me, may not work for you. This pattern is second nature to me, I don't want to sound cocky. I don't know what $BE is going to do tomorrow, but in the long run, I know. It's based on Odds and Probabilities. On $BE there is going to be a massive wall at the whole dollar mark of $6. Again always expect that level to not break, just look at $FCEL today. Whole and half dollar marks are key. Ideally here's my game plan. If I could trade this, here is what I would do. Option 1, Wait for a Short Entry, there are only 3 scenarios that in my opinion favor the short side. One being the First Red Day, as it is a huge momentum shift. Even though that $BE has already had a Red Day, ever underestimate the power of simplicity. Secondly, my favorite is Shorting the Green to Red move. This is the best one in my books. When a stock goes Green to Red, that is a MAJOR momentum shift. AGAIN keep is simple, you don't have to over complicate things! Lastly Shorting the Breakdown. The breakdown pattern is simple yet effective. As in $BE case, $5.75-5.50 is going go be a major whole and half dollar mark. As well I did not mention the fact that Stop Losses could be triggered. Meaning that you have people who actually put stop losses and that in my opinion act as a market mechanism for a tidal wave of sellers. I would love $BE to go higher, the higher it goes, the bigger and better opportunity the Market will give. $BE did close strong, but again it has a nice up-trend from the previous pullback. I am just waiting for the big one. I don't see this cracking $6, but again the higher the better. In my opinion,n I only see a Long opportunity into any potential Morning Panic, not a LATE DAY. If $BE fails to Gap tomorrow, I will be aiming for the Green to Red Short- and cover into the tidal wave of sellers. This game is not about being right or wrong, its all about ODDS and PROBABILITIES! The longer this holds under $6 and the more this consolidates, it gives Longs a reason the SELL. That is my mindset! We shall see what the Market gives us!






 Next is $FCEL, which I did a post on it yesterday so make sure to check it out here. I am not going to spend too much time on this one since I did a post yesterday. I am going to go over the game plan. The main point of yesterday's post was to respect former runners. Have a great memory of what runner has run in the past. If they ran in the past, they can do so in the present. Again human nature never changes. $FCEL was a recent Supernova from this previous year. In a nutshell, it's a gem! Again I don't give a shit about the "news", I am here to talk about the price action! Yes, I do take the news into consideration, but at the end of the day PRICE ACTION IS KING. Do you see any similarities in the two $FCEL charts above? They both rejected the whole dollar mark of $1! Human nature never changes! Here is the game plan. The fact that $FCEL has Gaped up two days in a row is a major bullish sign, as well Previous resistance is now acting as Support. Wait for the Momentum shift. If $FCEL fails to GAP UP that is a major Momentum shirt. In the Occasion that $FCEL fails to Gap you wait like a fucking SNIPER! For the Short side, Ideally, if the Gap Fails, you have two options. One Short the Green to Red Price Action, which is as well a major momentum shift. Second short the breakdown when $FCEL crack the level of $0.80 or 0.85 cents. Note that those zones will be potential stop loss trigger zones. Just as the run in July $FCEL did take a while to come down, you must take into consideration that this is not a low float stock. In my opinion, the only Long I see is Dip Buying a potential Morning Panic! Not a LATE DAY, it must be a MORNING, the tape will guide you. Never say that it's can't go higher, taking into consideration that tomorrow is Friday, you must be alert. In my opinion, always expect that level of $1 to reject. The long $FCEL goes side-ways the more pressure it puts on any Longs, thus leading them to sell. Let's see what the Market gives us!




Lastly, $ASTC was an absolute gem. This was the low float runner of the day. Look yes, maybe these stocks don't deserve to go up. Price action overpowers everything. I am not sure what the "news" was I don't really care. Overall what led this to move was the fact that the Float was relatively low. Congrats to Longs on the front side, again be sure to always lock in profits don't get greedy. Recognize the backside of the move and the topping action. This would have been a great short into the bounce for the late day fade. Perhaps we can see a potential play on Friday!


I will see you soon!


Disclaimer: This blog has a term of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

 

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