Get started

Consolidation-breakout

Ethereum looking bullish our of consolidationBeen following ethereum a lot these past few days as it broke out of a triangle but was unable to break the previous point of resistance and has been consolidating since. The bollinger bands are starting to get tight on the 4h, 12h, and 1d chart so within the next week or so I'm looking for a push to around .091 as the initial target and even possibly .095 as a more aggressive target. I might open a long soon with my stop placed shortly above the current consolidation that is visible on the 1h, but am looking to build most of my long with a break of .087.
ELong
by MarginChef2
Unite Group Making New All-Time HighsUnite Group has been in an uptrend since the end of 2011, experiencing a long period of consolidation from August 2015 to October 2017. During the period of consolidation it would have been best to stand aside until a breakout happened. Consolidations are very difficult to trade and your capital is best used on stocks that are actually trending. Patience here would have paid off because we now have a breakout from the most recent deep pullback and price is looking strong. We need to see price remain above the resistance level and use it as support and opportunities can be looked at if we get another breakout, as this will confirm a continuation of the bull trend. Price is currently making new all-time highs so there is not any previous areas of support/resistance in the way of price. Be alert to a possible breakout soon and keep this stock on the watchlist because it has a history of trending well. If the trend is as strong as the previous ones then there will be opportunities to compound which can multiply potential profits. Compounding is a method of extracting more from a trade in less time and with little effort. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
LSE:UTGLong
by Sublime_Trading
BTC: Think Twice Before Shorting Right NowThe drop from the Bearish Gartley BTC just had was caught quickly by the bulls, and although there are a few bearish indicators, such as the MACD on the 1D, overall BTC is still showing more bullish than bearish signs. Bulls have repeatedly held price above the 50% line inside the large consolidation pattern it is in, and just broke upward out of a smaller consolidation wedge through a price resistance line (the dotted red), currently holding well above the 618 fib. Usually a break out of consolidation like this gets more follow-up, so we'll have to see what happens. There is a decent chance BTC could break 10k soon.
BITFINEX:BTCUSDLong
by serekamina
Alliance Pharma Showing StrengthAlliance Pharma has a consistent pattern of consolidation followed by breakouts to the upside. The pattern can always change going forward but it is always useful to identify the recent behaviour of a stock. The reason being, if you were to enter a trade in this stock and price just went sideways, it may become tempting to exit the trade early. But by understanding that this stock experiences periods of consolidation, it will help you acknowledge that patience is just needed, as the probability of it breaking out is likely. We are currently seeing momentum to the upside as price broke out of consolidation in December 2017. We may see a period of consolidation soon or price may just continue to trend to the upside. There is nothing wrong with taking a breakout opportunity now but we just have to remember not to worry if the trend decides to go sideways. The £1.00 round number is not too far away which may cause some sort of resistance for price. We shall see if the momentum will continue going forward. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
LSE:APHLong
by Sublime_Trading
Sopheon PLC Trending Hard and FastSopheon is a good example of a nice moving stock. After it broke through consolidation which lasted the for the majority of 2017, it smashed through the resistance level and has not looked back. The Weekly 50 simple moving average played a part in pushing price up as it was used as support along the way. After the consolidation breakout, price has had an impulsive move to the upside with no clear pullback along the way so one may be due soon. If price does continue to move higher then it may struggle with the £10.00 round number as it can act as psychological support/resistance. At the moment we are seeing price moving down slightly after reaching the £9.00 area so we will have to see if the pullback occurs sooner. Remember that pullbacks are good opportunities to enter trades, just as long as they come down to a strong support area. We shall be waiting for opportunities once price breaks through £10.00 as there will be no obstacles in the way after that point and increasing the odds of a profitable trade. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
SLong
by Sublime_Trading
The GBPUSD Fails to Break ResistanceWe last posted on the GBPUSD on April 17th when price was testing and attempting to break throught the pivot resistance high of January. What we wanted to see was price break and close above this pivot resistance confirming it as support. This would then have offered a long entry into the trend with around 600 pips of profit on the table towards the next key resistance of 1.5000. But the breakout did not materialise and, instead, we can see that price made a swift turn around. The bears came in strong and have pushed price back to the support cluster of the 50SMA and the round number 1.4000. This keeps price within this current area of consolidation and so we still require a breakout. All is not lost. The overall bias is still bullish with price trading above the daily 200SMA amongst other key support levels. In addition, periods of of consolidation make an excellent foundation for trends to develop. Remember, the longer the consolidation the bigger the breakout as the expression goes. It is now a waiting game to see of price does breakout to the upside where we can add new positions to the long position already in play or if price weakens back to the 200SMA where we will look to exit our trade. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading
Bovis Homes Breaks Out As ExpectedBovis Homes has broken out of a strong resistance level which was set back in 2007 at £12.20. In our previous post we mentioned that we could see a breakout soon. The reason was because we could see price making higher lows leading up to the move towards the resistance level. We now have that breakout we were expecting so what we need to do next is ensure that this is not a fake breakout. The way we do this is by waiting for another breakout on the daily chart which will tell us that the buyers are stronger than the sellers. Breakouts are an easy and effective way to determine which direction the market is likely to go. If there is a second breakout then we may see a strong trend develop following the consolidation. The longer the period of consolidation the bigger the trend we can expect. As price has been consolidating since August 2015 it would not be surprising if the trend lasts for a year or more but there is no way of predicting that. It would also be nice to see a trend with small pullbacks and frequent breakouts . This stock should be on your watchlist as the opportunity to trade this may be coming soon. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
BLong
by Sublime_Trading
EURGBP Fake BreakoutEURGBP broke down through the consolidation support level only to return back to consolidation again. This forex pair has been in consolidation for some time now and rarely trends, but when it does trend there is usually a lot of profit for the taking. At the moment, price is above the Weekly 200 simple moving average and below the Daily 200 simple moving average so this is giving conflicting messages. We want both timeframes to be telling us the same information to have confidence in knowing which way to trade it. When we are getting mixed message we want to stand aside. If price can break through the consolidation resistance level then we may see opportunities for long trades but price will first need to move above the Daily 200 simple moving average. Right now we must stand aside and wait to see which direction price breaks out of the consolidation area. Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments! Sublime Trading
Long
by Sublime_Trading