5108 on TSEThe market is on uptrend. This level has a good move away, a good base, good profit margin but I don't like it as much because it is a DBR in an uptrend. So I will risk as half as I normally would do.
5108/N trade ideas
Bridgestone Corp WCA - Inverted head and shouldersCompany: Bridgestone Corporation
Ticker: 5108
Exchange: TSE
Sector: Automotive & Auto Parts
Introduction:
Greetings, and thank you for taking the time to read this analysis. Today, we are examining the weekly chart of Bridgestone Corp on the Tokyo Stock Exchange (TSE). Our focus is on a classical price pattern known as the inverted head and shoulders, which here manifests as a bullish continuation pattern.
Inverted Head and Shoulders Pattern:
The inverted head and shoulders pattern on this chart has been forming over a 686-day period. This pattern is particularly compelling due to its near-perfect symmetry, represented by the symmetry line. The current resistance, also referred to as the neckline of the price pattern, has seen multiple tests and is sitting at 5468.
Bullish Environment:
Notably, the price remains above the 200 EMA (Exponential Moving Average), which typically indicates a bullish market environment. Therefore, we are patiently waiting for a clear break of the neckline.
Trade Strategy:
To avoid premature breakouts, we could combine this trade with a breakout filter. Upon successful breakout, the price target stands at ¥6883, representing a potential price increase of approximately 26%.
Conclusion:
The weekly chart analysis of Bridgestone Corp reveals an emerging inverted head and shoulders pattern, suggesting a bullish continuation. As always, when trading based on chart patterns, it is essential to consider risk management and adequate position sizing.
Please note that this analysis does not constitute financial advice. Always conduct your own thorough research before making investment decisions.
If you found this analysis helpful, please consider liking, sharing, and following for more updates. Happy trading!
Best Regards,
Karim Subhieh
Range trading with winter expectations?Technicals put BRDCY in an uptrending channel. Expectations of one of the coldest winters (Michigan student here), could be the fundamental catalyst to drive price off the bottom trend
