Take a look at the 1-year chart of Gulfport (NASDAQ: GPOR) below with added notations:
After its April through July decline, GPOR started trading sideways over the next couple of months. While in that sideways move, the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
GPOR’s rectangle pattern has formed a resistance at $36 (red), and an $32 support (green), which it barely held yesterday. At some point the stock will have to break one of the two levels.
The Tale of the Tape: GPOR is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $32 or on a breakout above $36. The ideal short opportunity would be on a break below $32.
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