Nearing the Neckline of the 2020 Market Collapse Bottom
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
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Learn how to use the technical patterns of each market participant for better trade planning.
ttrader.im/tv-candlesticks
Learn how to use the technical patterns of each market participant for better trade planning.
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