Take a look at the 1-year chart of Antero (NYSE: AR) below with added notations:
AR has been declining since May, but most recently the stock has been trading in a sideways move. 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.
AR’s rectangle pattern has formed a resistance a $27 (red), and a $20 support (green). At some point the stock will have to break one of the two levels.
The Tale of the Tape: AR is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $20 or on a breakout above $27. The ideal short opportunity would be on a break below $20.
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