HCC chart update. HCC today gave a breakout with a big bullish candle with big volumes and closed above 34. Previous swing high was 33.85. Attached weekly candlestick chart shows various patterns on the chart.
First is a cup and handle breakout above 23, with potential target of 32, which has duly been achieved.
Next is a triangular consolidation from August to Nov 2023 from which stock price broke out and posted above mentioned swing high of 33.85 and went into consolidation.
It formed a double bottom between 27.70 and 33.85 as marked by solid blue lines on right side of chart. Potential target for this double bottom is at 40.
And finally a nice rounding bottom formation with a high on left side of chart at 48. Two important resistances ( previous top regions) are marked in dotted blue lines at 44 and 48.
This is a typical turnaround stock with regular doses of newsflow to which the stock price reacts and then goes into consolidation. Another aspect of the movement of this stock at current juncture is that since it still remains in the formation of a rounding structure (confirmation on breakout above 48) the trend is often fragile and there are lots of consolidations on way up. Usually when the trend becomes very strong, (usually after key resistances are crossed) parabolic type of moves begin.
Currently stock price has come out of two back to back consolidations in form of triangular consolidation and double bottom consolidation. Another aspect of this type of company is that it tends to get punished severely in market corrections. So one has to play it accordingly and if buying is done after breakouts, it has to be done with strict discipline and strict stop losses.
disc: invested as disclosed before. no trades in last month.
