{"id":4821,"date":"2016-12-15T05:18:27","date_gmt":"2016-12-15T10:18:27","guid":{"rendered":"http:\/\/www.morpheustrading.com\/blog\/?p=4821"},"modified":"2022-04-06T15:05:00","modified_gmt":"2022-04-06T19:05:00","slug":"stock-chart-winners-dec-2016","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/","title":{"rendered":"Winning Charts: $AMD Bull Flag Breakout, $PLNT Cup And Handle, $LNN Flat Base"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-4831\" src=\"https:\/\/www.morpheustrading.com\/blog\/wp-content\/uploads\/2016\/12\/stock-chart-review.png\" alt=\"stock chart review\" width=\"300\" height=\"212\" title=\"\">Successful swing traders know that winning stock chart patterns repeat themselves over and over again.<\/p>\n<p>As such, you can easily gain valuable knowledge by occasionally taking a retrospective look at &#8220;what worked well&#8221; with your recent winning trades.<\/p>\n<p>In this blog post, I <strong>walk through the &#8220;before&#8221; and &#8220;after&#8221; stock\u00a0charts<\/strong> of two\u00a0winning trades that were recently closed, as well as one\u00a0open position that is looking good.<\/p>\n<p>Specifically, I review the exact entry and exit points of $AMD (bull flag breakout), $PLNT (cup &amp; handle), and $LNN (flat base), exactly as previously detailed for subscribers in <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\"><em>The Wagner Daily<\/em><\/a>\u00a0newsletter.<\/p>\n<p>Grab a notebook, pen, and your favorite beverage, then kick back and keep reading to expand your knowledge and maximize your swing trading profits.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Advanced_Micro_Devices_AMD\" >Advanced Micro Devices ($AMD)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Bull_Flag_Breakout\" >Bull Flag Breakout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#14_gain_over_2-week_holding_period\" >+14% gain over 2-week holding period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Bought_1129_Sold_1214\" >Bought 11\/29, Sold 12\/14<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Planet_Fitness_PLNT\" >Planet Fitness ($PLNT)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Cup_and_Handle_Breakout\" >Cup and Handle Breakout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#13_gain_over_1-week_holding_period\" >+13% gain over 1-week holding period<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Bought_1108_Sold_1114\" >Bought 11\/08, Sold 11\/14<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Lindsay_Corp_LNN\" >Lindsay Corp ($LNN)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Flat_Base_Breakout\" >Flat Base Breakout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/morpheustrading.com\/blog\/stock-chart-winners-dec-2016\/#Bought_1123_still_open\" >Bought 11\/23 (still open)<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Advanced_Micro_Devices_AMD\"><\/span><strong>Advanced Micro Devices ($AMD)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Bull_Flag_Breakout\"><\/span><strong>Bull Flag Breakout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"14_gain_over_2-week_holding_period\"><\/span><strong>+14% gain over 2-week holding period<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Bought_1129_Sold_1214\"><\/span><strong>Bought 11\/29, Sold 12\/14<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>After thrusting off support of the 50-day moving average on heavier than average volume, $AMD formed a bull flag continuation pattern.<\/p>\n<p>To confirm a bull flag, we look for declining volume while the flag is being formed near the top of the range.<\/p>\n<p>Lighter volume during consolidation is bullish because it indicates traders are holding onto their gains, rather than selling into strength of the preceding rally.<\/p>\n<p>In the November 29 issue of our swing trading newsletter (sent to subscribers the evening of November 28), we listed $AMD as a potential buy entry above the November 28 high.<\/p>\n<p>$AMD triggered our buy entry on November 29, when the price moved above resistance of the previous day&#8217;s high.<\/p>\n<p>The daily chart of $AMD below shows the bull flag pattern that enabled us to list the stock as a <em>Wagner Daily<\/em> buy setup:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161213AMD1.png\" alt=\"$AMD ENTRY \" title=\"\"><\/p>\n<p><strong>Bull flag breakouts are momentum-driven<\/strong>, so we typically look for the price action in a bull flag pattern to move sharply higher within just <em>5 to 10 days<\/em> of our buy entry.<\/p>\n<p>However, after\u00a0buying $AMD on November 29, the price failed to follow-through right away and closed well off the highs of the session.<\/p>\n<p>This led to a two-day pullback that found support just above\u00a0the 20-day exponential moving average (a reliable indicator of short-term support).<\/p>\n<p>We stopped out of partial share size just beneath the November 29 low, but the stop on the remaining position (below the 20-day EMA) gave the trade some breathing room.<\/p>\n<p>After two days of consolidation, $AMD finally cleared the swing high, with strong volume, on December 6.<\/p>\n<p>The breakout after the shakeout prompted us to re-enter the shares we previously stopped out of the following day.<\/p>\n<p>This time, $AMD followed through with the bull flag breakout and zoomed over over the next few days.<\/p>\n<p>Since we knew there was major resistance in $AMD around the $11 level (see a monthly chart), we decided to lock in the solid gain, rather than trying to squeeze every penny out of the advance.<\/p>\n<p>As such, we alerted subscribers to exit the position on the December 14 open and netted a 14% gain on the initial entry, with a 12% gain on the shares that were re-entered.<\/p>\n<p>The entry, exit, and overall price action described above can be seen on the daily chart of $AMD below:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161213AMD2.png\" alt=\"$AMD EXIT \" title=\"\"><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Planet_Fitness_PLNT\"><\/span><strong>Planet Fitness ($PLNT)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Cup_and_Handle_Breakout\"><\/span><strong>Cup and Handle Breakout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"13_gain_over_1-week_holding_period\"><\/span><strong>+13% gain over 1-week holding period<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Bought_1108_Sold_1114\"><\/span><strong>Bought 11\/08, Sold 11\/14<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>One of our favorite chart patterns is the cup and handle, a bullish <a href=\"https:\/\/www.morpheustrading.com\/blog\/how-to-cup-handle-video\/\" target=\"_blank\" rel=\"noopener\">pattern<\/a> that precedes some of the most powerful and reliable breakouts.<\/p>\n<p>As shown on the stock chart below, $PLNT formed a cup and handle from late August to early November of this year.<\/p>\n<p>The &#8220;handle&#8221; of the pattern formed from October 27 to November 8, with the price action finding support at the rising 20-day EMA and 50-day MA (around $20.50).<\/p>\n<p>Our signal to list $PLNT as a potential setup in our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\">stock trading newsletter<\/a>\u00a0came on November 7, as the price rallied\u00a0above the short-term downtrend line (upper channel of the handle).<\/p>\n<p>When we spotted this, we placed a buy limit order to enter $PLNT on a slight pullback to $21.35 in the following session.<\/p>\n<p>The chart below shows the cup and handle pattern, as well as our subsequent buy entry on November 8:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161213PLNT1.png\" alt=\"$PLNT ENTRY \" title=\"\"><\/p>\n<p>$PLNT immediately surged higher after our buy entry, breaking through the high of the handle and giving us a nice profit buffer of 4% just one day after our entry.<\/p>\n<p>However, volume failed to confirm the bullish move because turnover was lighter than the previous day <em>and<\/em>\u00a0well below average.<\/p>\n<p>Because of this apparent lack of demand at a critical pivot point, we decided to treat $PLNT as a quick momentum swing trade, rather than holding on to the position for a bigger core gain over two to three months.<\/p>\n<p>We sold $PLNT\u00a0at $39.44 on the November 14 open,\u00a0due to weak volume on the breakout and the ugly reversal candle that formed on November 13.<\/p>\n<p>The chart below shows the price action after our buy entry, as well as the exit that locked in a 13% gain over just six sessions:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161213PLNT2.png\" alt=\"$PLNT EXIT \" title=\"\"><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lindsay_Corp_LNN\"><\/span><strong>Lindsay Corp ($LNN)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Flat_Base_Breakout\"><\/span><strong>Flat Base Breakout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Bought_1123_still_open\"><\/span><strong>Bought 11\/23 (still open)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>Unlike $AMD and $PLNT, our trade in $LNN remains an open long position in <em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\">The Wagner Daily<\/a><\/em>\u00a0model portfolio.<\/p>\n<p>The\u00a0long-term monthly chart below caught our attention at the time of buy entry, as there were\u00a0two failed bases leading to the third base of consolidation:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161209LNN.png\" alt=\"$LNN monthly \" title=\"\"><\/p>\n<p>Many new <em>and<\/em> experienced stock traders spend way too much time scanning for new trades on the <em>daily<\/em> chart timeframe.<\/p>\n<p>Although the daily chart is useful for seeing short-term trends, trade setups on the <em>monthly<\/em> timeframe can be more explosive, especially when they align with bullish price action on the weekly and daily chart intervals.<\/p>\n<p>The high volume gap up in\u00a0mid-October was an extremely bullish signal, which led to several weeks of tight basing action around the rising 20-day EMA and above the rising 50-day MA.<\/p>\n<p>On November 21,\u00a0we alerted <em>Wagner Daily<\/em> subscribers that we were placing a buy stop to enter $LNN above the highs of the range.<\/p>\n<p>That setup triggered for &#8220;official&#8221; buy entry on November 23, and we remain long the position.<\/p>\n<p>Our plan is to hold $LNN through any short-term pullbacks, in anticipation of a 30%-40% on this core trade:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/\/~rick\/\/charts\/2016\/161213LNN.png\" alt=\"$LNN entry \" title=\"\"><\/p>\n<p>Through 14 years of experience since Morpheus was founded in 2002, we have been tweaking and fine tuning our\u00a0winning stock trading strategy.<\/p>\n<p>But rather than seek\u00a0the elusive <a href=\"https:\/\/www.morpheustrading.com\/blog\/trading-psychology-setting-stops\/\" target=\"_blank\" rel=\"noopener\">holy grail<\/a> of trading, we simply focus on <strong>mastering the nuances<\/strong> of the most basic, yet highly reliable and profitable chart patterns.<\/p>\n<p>The <a href=\"https:\/\/www.morpheustrading.com\/blog\/bull-flag-breakout-silver-etf-slv\/\" target=\"_blank\" rel=\"noopener\">bull flag breakout<\/a> ($AMD), <a href=\"https:\/\/www.morpheustrading.com\/blog\/how-to-trade-cup-handle\/\" target=\"_blank\" rel=\"noopener\">cup and handle<\/a> ($PLNT), and <a href=\"https:\/\/www.morpheustrading.com\/blog\/best-stock-breakouts\/\" target=\"_blank\" rel=\"noopener\">flat base breakout<\/a> ($LNN) are three of our most frequently traded chart patterns.<\/p>\n<p>If you wish to learn more about any of those patterns,\u00a0click any link\u00a0in the sentence above.<\/p>\n<p>To profit from the best stock picks while also learning a &#8220;no nonsense&#8221; trading strategy that simply works, <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\"><strong>sign up now<\/strong><\/a>\u00a0for your test drive of our nightly stock pick newsletter.<\/p>\n<p><center><script src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\" async=\"\" type=\"text\/javascript\"><\/script><!-- Footer of content --> <ins class=\"adsbygoogle\" style=\"display: inline-block; width: 300px; height: 250px;\" data-ad-client=\"ca-pub-7565144363001883\" data-ad-slot=\"7002222565\"><\/ins><script type=\"text\/javascript\">\/\/ <![CDATA[ (adsbygoogle = window.adsbygoogle || []).push({}); \/\/ ]]><\/script><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Successful swing traders know that winning stock chart patterns repeat themselves over and over again. As such, you can easily gain valuable knowledge by occasionally taking a retrospective look at &#8220;what worked well&#8221; with your recent winning trades. In this blog post, I walk through the &#8220;before&#8221; and &#8220;after&#8221; stock\u00a0charts of two\u00a0winning trades that were [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-4821","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=4821"}],"version-history":[{"count":1,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4821\/revisions"}],"predecessor-version":[{"id":11226,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/4821\/revisions\/11226"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=4821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=4821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=4821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}